Fourth Quarter 2011 Results:
Total net sales for the fourth quarter of 2011 were $59.0 million, up from $13.1 million for the fourth quarter of 2010 and up from $22.1 million for the third quarter of 2011.
Gross profit for the fourth quarter of 2011 was $8.7 million, compared with $2.1 million for the fourth quarter of 2010 and with $1.4 million for the third quarter of 2011.
Total operating expenses for fourth quarter 2011 were $3.0 million, or 5.0 percent of total net sales. This compared with total operating expenses of $2.3 million, or 17.6 percent of total net sales, for the fourth quarter of 2010 and with total operating expenses of $2.6 million, or 11.8 percent of total net sales, for the third quarter of 2011.
Net income for the fourth quarter of 2011 was $4.8 million, or $0.03 per basic and diluted share. This compared with a net loss of $0.4 million, or ($0.01) per basic and diluted share, for the fourth quarter of 2010 and with a net loss of $1.3 million, or ($0.01) per basic and diluted share, for the prior quarter.
Year 2011 Results:
For the year ended December 31, 2011, total net sales were $103.1 million, compared with total net sales of $35.4 million for 2010. Gross profit for 2011 was $12.8 million, compared with $5.3 million for 2010.
For 2011, the Company reported total operating expenses of $11.2 million, compared with total operating expenses of $12.2 million for 2010. The Company recorded a net loss of $0.5 million for 2011, or $0.00 per basic and diluted share, compared with a net loss of $9.4 million, or ($0.18) per basic and diluted share for 2010.
Cash and cash equivalents at December 31, 2011 were $23.9 million, compared with $1.4 million at December 31, 2010 and with $5.8 million at September 30, 2011.
“We’re pleased with our record fourth quarter and year 2011 financial results, which marked a year in which we completed SPI’s repositioning as a SEF developer,” said Stephen Kircher, CEO of SPI. “This enables SPI to pursue newer, more profitable projects, accelerating our access to market growth opportunities, and favorably impacting our outlook for total net sales for 2012.”
Successfully shipped and recorded in fourth-quarter 2011 total net sales is a previously announced $42 million order from KDC Solar LLC for deployment of SEF projects in New Jersey
Announced a second large-scale project in Evros, Greece to develop a 2 megawatt fixed-ground-mount SEF
Selected to install a second solar system for Twentieth Century Fox Film Corporation comprising an additional 230 kilowatts for a rooftop PV solar system
Awarded engineering, construction and procurement contract to build 11.3 megawatt utility-scale project for the state of New Jersey
Secured $64 million in project financing, including $44 million from China Development Bank to fund SEFs in New Jersey and $20 million from LDK Solar, our parent company, for two projects in California
The company has filed a Form 8-K to report that it will file an amended Form 10-K/A for the year 2010 and amended quarterly reports on Form 10-Q/A for the first three quarters of 2011 to restate prior year financial statements due to a correction in accounting treatment for a single SEF project (Aerojet 1) initiated in 2009.
The potential impact of the restatement on the 2011 financial statements increases revenue by $1.8 million with a net loss of $35,000 and has no impact on 2011 earnings per share or cash. The restatement also increases total assets by $13.9 million and total liabilities of $14.6 million, with the difference being depreciation and interest expense.
2012 Business Outlook:
As noted in the Company’s news release issued February 22, 2012, SPI continues to expect that 2012 net sales will approximately double its 2011 levels.