SINGAPORE, Nov. 17, 2021 /PRNewswire/ -- Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN) ("Maxeon" or "the Company"), a global leader in solar innovation and channels, today announced its financial results for the third quarter ended October 3, 2021.

Maxeon Solar Technologies Logo (PRNewsfoto/Maxeon Solar Technologies)

Maxeon's Chief Executive Officer Jeff Waters noted, "The team executed very well in the third quarter on near and long term initiatives despite unprecedented supply chain conditions. Our Distributed Generation channel set another record in Europe and the transition to sales Beyond the Panel accelerated with microinverter sales increasing 50%. In Utility-Scale, we booked our first major project in India totaling nearly 200MW, and added up to approximately 400MW to the United States backlog.

We are thrilled to announce that we safely re-opened our Malaysia facility after a 15 day shutdown during the quarter due to a COVID-19 outbreak, and that as of today, 99% of those employees are fully vaccinated. We are also supporting vaccinations for our employees in the Philippines and Mexico where national rates are still far behind Europe and the United States. The global pandemic is having a well publicized impact on global supply chain conditions. We are weathering these events, and delivered third quarter financial results within our guidance range. We also stayed on schedule for our long term transformation initiatives including the ramps of Maxeon 6 and North America Performance lines.

In the United States, we remain supportive of the Biden Administration's efforts to incentivize domestic manufacturing. If the Solar Energy Manufacturing for America Act passes this year, Maxeon is setup to move fast thanks to our longtime presence in the United States, decades of experience ramping cell and module facilities, and our DOE Loan Guarantee Application for a 3 Gigawatt facility which has already progressed to Part 2 of the process. This is the next of several steps in the DOE process which could ultimately result in a conditional commitment and final loan agreement from the DOE,"

Selected Q3 Financial Summary

(In thousands, except shipments)

Fiscal Q3 2021


Fiscal Q2 2021


Fiscal Q3 2020

Shipments, in MW

566



434



531


Revenue

$

220,488



$

175,895



$

206,620


Gross loss(1)

(16,708)



(2,812)



(12,302)


GAAP Operating expenses

32,639



38,069



26,861


GAAP Net loss attributable to the stockholders(1)

(65,363)



(77,011)



(67,755)


Capital investment

54,140



51,703



4,889















Other Financial Data(1), (2)

(In thousands)

Fiscal Q3 2021


Fiscal Q2 2021


Fiscal Q3 2020

Non-GAAP Gross loss

$

(16,353)



$

(2,629)



$

(11,665)


Non-GAAP Operating expenses

29,678



31,200



25,575


Adjusted EBITDA

(33,099)



(27,341)



(33,074)




(1)

The Company's GAAP and Non-GAAP results were impacted by the effects of certain items. Refer to "Supplementary information affecting GAAP and Non-GAAP results" below.



(2)

The Company's use of Non-GAAP financial information, including a reconciliation to U.S. GAAP, is provided under "Use of Non-GAAP Financial Measures" below.

Supplementary information affecting GAAP and Non-GAAP results



Three Months Ended

(In thousands)

Financial statements
item affected

October 3, 2021


July 4, 2021


September 27, 2020

Incremental cost of above market polysilicon(1)

Cost of revenue

11,490



12,538



38,138


Loss on ancillary sales of excess polysilicon(2)

Cost of revenue

7,425



2,498



1,993


Accommodation fee associated with the long-term polysilicon supply contract(3)

Other, net

—



—



5,900




(1)

Relates to the difference between our contractual cost for the polysilicon under the long-term fixed supply agreements with our supplier and the price of polysilicon available in the market as derived from publicly available information at the beginning of each quarter, multiplied by the volume of modules sold within the quarter.



(2)

In order to reduce inventory and improve working capital, we have periodically elected to sell polysilicon inventory procured under the long-term fixed supply agreements in the market at prices below our purchase price, thereby incurring a loss.



(3)

Relates to long-term fixed supply agreements with a polysilicon supplier which is structured as "take or pay" contract, that specify future quantities and pricing of products to be supplied. We negotiated an extension of our long-term fixed supply agreements with the supplier which resulted in a one-time accommodation fee recognized in the quarter ended September 27, 2020.

Fourth Quarter 2021 Outlook

For the fourth quarter of 2021, the Company anticipates the following results:

(In millions, except shipments)

 Outlook

Shipments, in MW

540 - 570 MW

Revenue

$215 - $235

Gross loss(1)

$5 - $15

Non-GAAP gross loss(1), (2)

$5 - $15

Operating expenses

$35 ± $2

Non-GAAP operating expenses(3)

$31 ± $2

Adjusted EBITDA(1), (4)

$(32) - $(42)

Capital investments(5)

$45 - $50

Out-of-market polysilicon cost(1)

$13 - $17

Restructuring charges(3), (6)

$2 - $3



(1)

Outlook for Gross loss, Non-GAAP gross loss and Adjusted EBITDA includes out-of-market polysilicon cost.



(2)

The Company's Non-GAAP gross loss is impacted by the effects of adjusting for stock-based compensation expense. The Company does not provide a reconciliation between its gross loss and Non-GAAP gross loss outlook as the outlook is rounded to the nearest million and hence the adjustment does not result in a difference to Non-GAAP gross loss outlook.



(3)

The Company's Non-GAAP operating expenses are impacted by the effects of adjusting for stock-based compensation expense and restructuring charges.



(4)

The Company cannot provide a reconciliation between its Adjusted EBITDA projection and the most directly comparable GAAP measures without unreasonable efforts because it is unable to predict with reasonable certainty the ultimate outcome of the remeasurement gain or loss of the prepaid forward.



(5)

Capital investments are directed mainly to upgrading production from Maxeon 2 to Maxeon 6 in our Malaysia factory, the purchase of cell and module equipment for our 1.8 GW of Performance line capacity for the U.S., as well as Maxeon 7 pilot line investment.



(6)

We are in the process of closing our module factory in Toulouse, France resulting in anticipated restructuring charges. Additional restructuring charges are anticipated for the continued restructuring of our manufacturing network. The restructuring charges are included in operating expenses.

These anticipated results for the fourth quarter of 2021 are preliminary, unaudited and represent the most current information available to management. The Company's business outlook is based on management's current views and estimates with respect to market conditions, production capacity, the uncertainty of the continuing impact of the COVID-19 pandemic, and the global economic environment. Please refer to Forward Looking Statements section below. Management's views and estimates are subject to change without notice.

For more information

Maxeon's third quarter 2021 financial results and management commentary can be found on Form 6-K by accessing the Financials & Filings page of the Investor Relations section of Maxeon's website at: https://corp.maxeon.com/investor-relations. The Form 6-K and Company's other filings are also available online from the Securities and Exchange Commission at www.sec.gov.

Conference Call Details

The Company will hold a conference call on November 17, 2021, at 5:30 PM U.S. ET / November 18, 2021, at 6:30 AM Singapore Time, to discuss results and to provide an update on the business. Conference call details are below.

Dial-in:
North America (toll-free): +1 (833) 301-1154
International: +1 (914) 987-7395
Singapore: +65 3165-4607
Conference ID: 5978769

A simultaneous webcast of the conference call will be available on Maxeon's website at https://corp.maxeon.com/events-and-presentations.

Listeners should dial in or log on 10 minutes in advance.  A replay will be available online within 24 hours after the event.

A replay of the conference call may be accessed by phone at the following numbers until November 24, 2021. To access the replay, please reference the following numbers:

North America (toll-free): +1 (855) 859-2056 / +1 (800) 585-8367
International: +1 (404) 537-3406
Conference ID: 5978769

About Maxeon Solar Technologies
Maxeon Solar Technologies Ltd (NASDAQ: MAXN) is Powering Positive ChangeTM. Headquartered in Singapore, Maxeon designs and manufactures Maxeon® and SunPower® brand solar panels, and has sales operations in more than 100 countries, operating under the SunPower brand in certain countries outside the United States. The Company is a leader in solar innovation with access to over 1,000 patents and two best-in-class solar panel product lines. Maxeon products span the global rooftop and solar power plant markets through a network of more than 1,200 trusted partners and distributors. A pioneer in sustainable solar manufacturing, Maxeon leverages a 35-year history in the solar industry and numerous awards for its technology. For more information about how Maxeon is Powering Positive ChangeTM visit us at https://www.maxeon.com/, on LinkedIn and on Twitter.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding: (a) our expectations regarding pricing trends, demand and growth projections; (b) potential disruptions to our operations and supply chain that may result from epidemics or natural disasters, including the duration, scope and impact on the demand for our products and the pace of recovery from the COVID-19 pandemic; (c) anticipated product launch timing and our expectations regarding ramp, customer acceptance and demand, upsell and expansion opportunities; (d) our expectations and plans for short- and long-term strategy, including our anticipated areas of focus and investment, market expansion, product and technology focus, and projected growth and profitability; (e) our ability to meet short term and long term material cash requirements, our ability to complete an equity or debt offering at favorable terms, if at all, and our overall liquidity, substantial indebtedness and ability to obtain additional financing; (f) our technology outlook, including anticipated fab utilization and expected ramp and production timelines for the Company's Maxeon 5 and 6, next-generation Maxeon 7 and Performance line solar panels, expected cost reduction, and future performance; (g) our strategic goals and plans, including partnership discussions with respect to the Company's next generation technology, and our relationships with existing customers, suppliers and partners, and our ability to achieve and maintain them; (h) expectations regarding our future performance and revenues resulting from contracted orders, bookings, backlog, and pipelines in our sales channels; and (i) our fourth quarter fiscal year 2021 guidance, including shipments, revenue, gross profit, non-GAAP gross profit, operating expenses, non-GAAP operating expenses, Adjusted EBITDA, capital investments, restructuring charges, out-of-market polysilicon cost, and related assumptions.

The forward-looking statements can be also identified by terminology such as "may," "might," "could," "will," "aims," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this press release and Maxeon's operations and business outlook contain forward-looking statements.

These forward-looking statements are based on our current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward-looking statements. These statements are not guarantees of future performance and are subject to a number of risks. The reader should not place undue reliance on these forward-looking statements, as there can be no assurances that the plans, initiatives or expectations upon which they are based will occur. Factors that could cause or contribute to such differences include, but are not limited to: (1) challenges in executing transactions key to our strategic plans, including regulatory and other challenges that may arise; (2) our liquidity, substantial indebtedness, and ability to obtain additional financing for our projects, customers and operations; (3) our ability to manage supply chain cost increases and operating expenses; (4) potential disruptions to our operations and supply chain that may result from damage or destruction of facilities operated by our suppliers, epidemics or natural disasters, including impacts of the COVID-19 pandemic; (5) our ability to manage our key customers and suppliers; (6) the success of our ongoing research and development efforts and our ability to commercialize new products and services, including products and services developed through strategic partnerships; (7) competition in the solar and general energy industry and downward pressure on selling prices and wholesale energy pricing; (8) changes in regulation and public policy, including the imposition and applicability of tariffs; (9) our ability to comply with various tax holiday requirements as well as regulatory changes or findings affecting the availability of economic incentives promoting use of solar energy and the availability of tax incentives or the imposition of tax duties; (10) fluctuations in our operating results; (11) appropriately sizing our manufacturing capacity and containing manufacturing and logistics difficulties that could arise; (12) unanticipated impact to customer demand and sales schedules due, among other factors, to the spread of COVID-19 and other environmental disasters; (13) challenges managing our acquisitions, joint ventures and partnerships, including our ability to successfully manage acquired assets and supplier relationships; (14) reaction by securities or industry analysts to our quarterly guidance which, in combination with our results of operations, may cause them to cease publishing research or reports about us, or adversely change their recommendations regarding our common stock, which may negatively impact the market price of our common stock and volume of our stock trading; and (15) unpredictable outcomes resulting from our litigation activities. A detailed discussion of these factors and other risks that affect our business is included in filings we make with the Securities and Exchange Commission ("SEC") from time to time, including our most recent report on Form 20-F, particularly under the heading "Risk Factors". Copies of these filings are available online from the SEC at www.sec.gov, or on the SEC Filings section of our Investor Relations website at https://corp.maxeon.com/investor-relations. All forward-looking statements in this press release are based on information currently available to us, and we assume no obligation to update these forward-looking statements in light of new information or future events.

Use of Non-GAAP Financial Measures

We present certain non-GAAP measures such as non-GAAP gross profit, non-GAAP operating expenses and earnings before interest, taxes, depreciation and amortization ("EBITDA") adjusted for stock-based compensation, restructuring charges, remeasurement gain on prepaid forward and physical delivery forward and loss on extinguishment of debt ("Adjusted EBITDA") to supplement our condensed consolidated and combined financial results presented in accordance with GAAP. Non-GAAP gross profit is defined as gross profit excluding stock-based compensation. Non-GAAP operating expenses is defined as operating expenses excluding stock-based compensation and restructuring charges.

We believe that non-GAAP gross profit, non-GAAP operating expenses and Adjusted EBITDA provide greater transparency into management's view and assessment of the Company's ongoing operating performance by removing items management believes are not representative of our continuing operations and may distort our longer-term operating trends. We believe these measures are useful to help enhance the comparability of our results of operations across different reporting periods on a consistent basis and with our competitors, distinct from items that are infrequent or not associated with the Company's core operations as presented above. We also use these non-GAAP measures internally to assess our business, financial performance and current and historical results, as well as for strategic decision-making and forecasting future results. Given our use of non-GAAP measures, we believe that these measures may be important to investors in understanding our operating results as seen through the eyes of management. These non-GAAP measures are neither prepared in accordance with GAAP nor are they intended to be a replacement for GAAP financial data, should be reviewed together with GAAP measures and may be different from non-GAAP measures used by other companies.

As presented in the "Reconciliation of Non-GAAP Financial Measures" section, each of the non-GAAP financial measures excludes one or more of the following items in arriving to the non-GAAP measures:

  • Stock-based compensation expense. Stock-based compensation relates primarily to equity incentive awards. Stock-based compensation is a non-cash expense that is dependent on market forces that are difficult to predict and is excluded from non-GAAP gross profit, non-GAAP operating expense and Adjusted EBITDA. Management believes that this adjustment for stock-based compensation expense provides investors with a basis to measure our core performance, including the ability to compare our performance with the performance of other companies, without the period-to-period variability created by stock-based compensation.
  • Restructuring charges (benefits). We incur restructuring charges related to reorganization plans aimed towards realigning resources consistent with our global strategy and improving its overall operating efficiency and cost structure. Restructuring charges are excluded from non-GAAP operating expenses and Adjusted EBITDA because they are not considered core operating activities. Although we have engaged in restructuring activities in the past, past activities have been discrete events based on unique sets of business objectives. As such, management believes that it is appropriate to exclude restructuring charges from our non-GAAP financial measures as they are not reflective of ongoing operating results nor do these charges contribute to a meaningful evaluation of our past operating performance.
  • Remeasurement loss (gain) on prepaid forward and physical delivery forward. This relates to the mark-to-market fair value remeasurement of privately negotiated prepaid forward and physical delivery transactions. The transactions were entered into in connection with the issuance on July 17, 2020 of the 6.50% Green Convertible Senior Notes due 2025 for an aggregate principal amount of $200.0 million. The prepaid forward is remeasured to fair value at the end of each reporting period, with changes in fair value booked in earnings. The fair value of the prepaid forward is primarily affected by the Company's share price. The physical delivery forward was remeasured to fair value at the end of the Note Valuation Period on September 29, 2020, and was reclassified to equity after remeasurement, and will not be subsequently remeasured. The fair value of the physical delivery forward was primarily affected by the Company's share price. The remeasurement gain on prepaid forward and physical delivery forward is excluded from Adjusted EBITDA because it is not considered core operating activities. As such, management believes that it is appropriate to exclude these mark-to-market adjustments from our Adjusted EBITDA as they are not reflective of ongoing operating results nor do these gains contribute to a meaningful evaluation of our past operating performance.
  • Loss on extinguishment of debt. This relates to the loss that arose from the termination of our $50.0 million working capital facility in September 2021 and the expiration of the availability period for draw down of our $75.0 million term loans in August 2021. Loss on debt extinguishment is excluded from Adjusted EBITDA because it is not considered part of core operating activities. Such activities are discrete events based on unique sets of business objectives. As such, management believes that it is appropriate to exclude the loss on extinguishment of debt from our non-GAAP financial measures as it is not reflective of ongoing operating results nor do these charges contribute to a meaningful evaluation of our past operating performance.

 

Reconciliation of Non-GAAP Financial Measures



Three Months Ended

(In thousands)

October 3, 2021


July 4, 2021


September 27, 2020

Gross loss

$

(16,708)



$

(2,812)



$

(12,302)


Stock-based compensation

355



183



637


Non-GAAP Gross loss

(16,353)



(2,629)



(11,665)








GAAP Operating expenses

32,639



38,069



26,861


Stock-based compensation

(1,447)



(1,708)



(1,286)


Restructuring charges

(1,514)



(5,161)



—


Non-GAAP Operating expenses

29,678



31,200



25,575








GAAP Net loss attributable to the stockholders

(65,363)



(77,011)



(67,755)


Interest expense, net

6,671



7,054



11,509


Provision for (benefit from) income taxes

174



(1,217)



5,043


Depreciation

10,999



9,681



9,182


Amortization

68



65



1,290


EBITDA

(47,451)



(61,428)



(40,731)


Stock-based compensation

1,802



1,891



1,923


Restructuring charges

1,514



5,161



—


Remeasurement loss on physical delivery forward and prepaid forward

5,961



27,035



5,734


Loss on extinguishment of debt

5,075



—



—


Adjusted EBITDA

(33,099)



(27,341)



(33,074)


 

Reconciliation of Non-GAAP Outlook


(In millions)

Outlook

Operating expenses

$35 ± $2

Stock-based compensation

(1.5)

Restructuring charges

(2.5)

Non-GAAP operating expenses

$31 ± $2

©2021 Maxeon Solar Technologies, Ltd. All rights reserved. MAXEON is a registered trademark of Maxeon Solar Technologies, Ltd. Visit https://corp.maxeon.com/trademarks for more information.

MAXEON SOLAR TECHNOLOGIES, LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(In thousands, except for shares data)



As of


October 3, 2021


January 3, 2021

Assets




Current assets:




Cash and cash equivalents

$

174,940


$

206,744

Restricted short-term marketable securities

—


1,359

Accounts receivable, net

59,369


76,702

Inventories

220,419


169,240

Advances to suppliers, current portion

51,688


43,680

Prepaid expenses and other current assets

55,843


49,470

Total current assets

$

562,259


$

547,195

Property, plant and equipment, net

338,932


246,908

Operating lease right of use assets

16,025


13,482

Other intangible assets, net

342


456

Advances to suppliers, net of current portion

9,916


49,228

Other long-term assets

144,801


123,074

Total assets

$

1,072,275


$

980,343

Liabilities and Equity




Current liabilities:




Accounts payable

$

254,608


$

159,184

Accrued liabilities

76,622


77,307

Contract liabilities, current portion

31,321


20,756

Short-term debt

20,751


48,421

Operating lease liabilities, current portion

2,626


2,464

Total current liabilities

$

385,928


$

308,132

Long-term debt

385


962

Contract liabilities, net of current portion

35,116


33,075

Operating lease liabilities, net of current portion

13,783


12,064

Convertible debt

142,955


135,071

Other long-term liabilities

66,245


51,752

Total liabilities

$

644,412


$

541,056

Commitments and contingencies




Equity:




Common stock, no par value (44,232,455 and 33,995,116 issued and outstanding as of October 3, 2021 and January 3, 2021, respectively)

$

—


$

—

  Additional paid-in capital

622,569


451,474

  Accumulated deficit

(189,629)


(8,441)

  Accumulated other comprehensive loss

(10,758)


(10,391)

Equity attributable to the Company

422,182


432,642

Noncontrolling interests

5,681


6,645

Total equity

427,863


439,287

Total liabilities and equity

$

1,072,275


$

980,343

 

MAXEON SOLAR TECHNOLOGIES, LTD.

CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS

(unaudited)

(In thousands, except per share data)



Three Months Ended


Nine Months Ended


October 3, 2021


September 27, 2020


October 3, 2021


September 27, 2020

Revenue

$

220,488



$

206,620



$

561,800



$

599,272


Cost of revenue

237,196



218,922



580,269



616,366


Gross loss

(16,708)



(12,302)



(18,469)



(17,094)


Operating expenses:








Research and development

12,632



9,819



35,827



25,431


Sales, general and administrative

18,493



17,042



64,554



62,160


Restructuring charges

1,514



—



7,534



—


Total operating expenses

32,639



26,861



107,915



87,591


Operating loss

(49,347)



(39,163)



(126,384)



(104,685)


Other expense, net








Interest expense, net

(6,671)



(11,509)



(21,337)



(23,732)


Loss on extinguishment of debt

(5,075)



—



(5,075)



—


Other, net

(5,663)



(11,551)



(23,119)



(8,094)


Other expense, net

(17,409)



(23,060)



(49,531)



(31,826)


Loss before income taxes and equity in losses of unconsolidated investees

(66,756)



(62,223)



(175,915)



(136,511)


Provision for income taxes

(174)



(5,043)



(1,219)



(7,390)


Equity in income (losses) of unconsolidated investees

917



58



(5,018)



(586)


Net loss

(66,013)



(67,208)



(182,152)



(144,487)


Net loss (income) attributable to noncontrolling interests

650



(547)



964



(1,602)


Net loss attributable to the stockholders

$

(65,363)



$

(67,755)



$

(181,188)



$

(146,089)










Net loss per share attributable to stockholders:








Basic

$

(1.62)



$

(2.74)



$

(4.97)



$

(6.51)


Diluted

(1.62)



(2.74)



(4.97)



(6.51)










Weighted average shares used to compute net loss per share:








Basic

40,420



24,767



36,462



22,432


Diluted

40,420



24,767



36,462



22,432


 

MAXEON SOLAR TECHNOLOGIES, LTD.

CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF EQUITY

(unaudited)

(In thousands)



Shares


Amount


Additional
Paid In
Capital


Net Parent
Investment


Accumulated
Deficit


Accumulated
Other
Comprehensive
Loss


Equity
Attributable
to the
Company


Noncontrolling
Interests


Total Equity

Balance at January 3, 2021

33,995



$

—



$

451,474



$

—



$

(8,441)



$

(10,391)



$

432,642



$

6,645



$

439,287


Net loss

—



—



—



—



(38,814)



—



(38,814)



98



(38,716)


Issuance of common stock for stock-based compensation, net of tax withheld

229



—



(2,550)



—



—



—



(2,550)



—



(2,550)


Recognition of stock-based compensation

—



—



1,570



—



—



—



1,570



—



1,570


Other comprehensive income

—



—



—





—



(79)



(79)



—



(79)


Balance at April 4, 2021

34,224



$

—



$

450,494



$

—



$

(47,255)



$

(10,470)



$

392,769



$

6,743



$

399,512


Net loss

—



$

—



$

—



$

—



$

(77,011)



$

—



$

(77,011)



$

(412)



$

(77,423)


Issuance of common stock, net of issuance cost

9,916



—



169,684



—



—



—



169,684



—



169,684


Issuance of common stock for stock-based compensation, net of tax withheld

57



—



(1,262)



—



—



—



(1,262)



—



(1,262)


Recognition of stock-based compensation

—



—



2,097



—



—



—



2,097



—



2,097


Other comprehensive income

—



—



—



—



—



(473)



(473)



—



(473)


Balance at July 4, 2021

44,197



$

—



$

621,013



$

—



$

(124,266)



$

(10,943)



$

485,804



$

6,331



$

492,135


Net loss

—



$

—



$

—



$

—



$

(65,363)



$

—



$

(65,363)



$

(650)



$

(66,013)


Issuance of common stock for stock-based compensation, net of tax withheld

35



—



(263)



—



—



—



(263)



—



(263)


Recognition of stock-based compensation

—



—



1,819



—



—



—



1,819



—



1,819


Other comprehensive income

—



—



—



—



—



185



185



—



185


Balance at October 3, 2021

44,232



—



622,569



—



(189,629)



(10,758)



422,182



5,681



427,863







































Shares


Amount


Additional
Paid In
Capital


Net Parent
Investment


Accumulated
Deficit


Accumulated
Other
Comprehensive
Loss


Equity
Attributable
to the
Company


Noncontrolling
Interests


Total Equity

Balance at December 29, 2019

—



$

—



$

—



$

369,837



$

—



$

(7,618)



$

362,219



$

5,304



$

367,523


Net loss

—



—



—



(31,749)



—



—



(31,749)



672



(31,077)


Other comprehensive income

—



—



—



—



—



1,612



1,612



—



1,612


Net Parent contribution

—



—



—



35,958



—



—



35,958



—



35,958


Balance at March 29, 2020

—



$

—



$

—



$

374,046



$

—



$

(6,006)



$

368,040



$

5,976



$

374,016


Net loss

—



—



—



(46,585)



—



—



(46,585)



383



(46,202)


Other comprehensive income

—



—



—



—



—



93



93



—



93


Net Parent contribution

—



—



—



(19,585)



—



—



(19,585)



—



(19,585)


Balance at June 28, 2020

—



$

—



$

—



$

307,876



$

—



$

(5,913)



$

301,963



$

6,359



$

308,322


Net loss

—



—



—



(55,856)



(11,899)



—



(67,755)



547



(67,208)


Issuance of common stock, net of issuance cost

8,916



—



297,675



—



—



—



297,675



—



297,675


Issuance of physical delivery forwards

3,313



—



50,660



—



—



—



50,660



—



50,660


Issuance of convertible debt, net of issuance cost

—



—



52,167



—



—



—



52,167



—



52,167


Conversion of Net parent investment into common stock, net of issuance cost

21,268



—



105,351



(106,127)



—



—



(776)



—



(776)


Distribution to non-controlling interest

—



—



—



—



—



—



—



(278)



(278)


Recognition of stock-based compensation

—



—



610



—



—



—



610



—



610


Other comprehensive income

—



—



—



—



—



(10,143)



(10,143)



—



(10,143)


Net Parent contribution

—



—



—



(145,893)



—



—



(145,893)



—



(145,893)


Balance at September 27, 2020

33,497



$

—



$

506,463



$

—



$

(11,899)



$

(16,056)



$

478,508



$

6,628



$

485,136




















 

MAXEON SOLAR TECHNOLOGIES, LTD.

CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS

(unaudited)

(In thousands)



Nine Months Ended


October 3, 2021


September 27, 2020

Cash flows from operating activities




Net loss

$

(182,152)


$

(144,487)

Adjustments to reconcile net loss to net cash used in operating activities




Depreciation and amortization

30,095


38,221

Stock-based compensation

5,197


5,736

Non-cash interest expense

10,518


15,858

Equity in losses of unconsolidated investees

5,018


586

Gain from dilution of interest in joint venture

(2,975)


—

Deferred income taxes

1,926


712

Gain on equity investments

—


(1,822)

Loss (Gain) on disposal of property, plant and equipment

2,216


(641)

Loss on debt extinguishment

5,075


—

Remeasurement loss on prepaid forward

24,641


5,734

Other, net

(1,728)


847

Changes in operating assets and liabilities




Accounts receivable

18,378


76,620

Contract assets

172


(2,563)

Inventories

(50,884)


15,356

Prepaid expenses and other assets

(13,748)


2,366

Operating lease right-of-use assets

1,812


1,725

Advances to suppliers

31,304


18,217

Accounts payable and other accrued liabilities

52,922


(98,759)

Contract liabilities

35,914


(59,619)

Operating lease liabilities

(2,175)


(1,387)

Net cash used in operating activities

(28,474)


(127,300)

Cash flows from investing activities




Purchases of property, plant and equipment

(116,801)


(14,388)

Proceeds from disposal of short-term investments

1,318


6,572

Purchase of short-term investments

—


(1,340)

Cash paid for disposal of property, plant and equipment

(283)


—

Proceeds from sale of assets

—


1,283

Proceeds from dividends and partial return of capital by an unconsolidated investee

—


2,462

Net cash used in investing activities

(115,766)


(5,411)

Cash flows from financing activities




Proceeds from debt

130,265


164,968

Repayment of debt

(157,812)


(164,533)

Repayment of finance lease obligations

(535)


(412)

Payment for tax withholding obligations for issuance of common stock upon vesting of restricted stock units

(4,075)


—

Net proceeds from issuance of common stock

169,684


296,899

Net proceeds from issuance of convertible debt



190,253

Payment of Prepaid Forward



(40,000)

Distribution to noncontrolling interest



(278)

Net Parent contribution

—


(125,000)

Net cash provided by financing activities

137,527


321,897

Effect of exchange rate changes on cash, cash equivalents and restricted cash

67


(187)

Net (decrease) increase in cash, cash equivalents and restricted cash

(6,646)


188,999

Cash, cash equivalents and restricted cash, beginning of period

209,572


123,803

Cash, cash equivalents and restricted cash, end of period

$

202,926


$

312,802

Non-cash transactions




Property, plant and equipment purchases funded by liabilities

$

36,724


$

8,638

Cost from issuance of common stock paid in shares

1,078


—

Interest expense financed by SunPower

—


11,333

Aged supplier financing balances reclassified from accounts payable to short-term debt

—


23,933

Right-of-use assets obtained in exchange for lease obligations

5,020


—

The following table reconciles our cash and cash equivalents and restricted cash reported on our Condensed Consolidated Balance Sheets and the cash, cash equivalents and restricted cash reported on our Condensed Consolidated and Combined Statements of Cash Flows as of October 3, 2021 and September 27, 2020:

(In thousands)

October 3, 2021


September 27, 2020

Cash and cash equivalents

$

174,940



$

309,917


Restricted cash, current portion, included in Prepaid expenses and other current assets

3,962



2,883


Restricted cash, net of current portion, included in Other long-term assets

24,024



2


Total cash, cash equivalents and restricted cash shown in Condensed Consolidated and Combined Statements of Cash Flows

$

202,926



$

312,802


 

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SOURCE Maxeon Solar Technologies, Ltd.