EX-99.1 2 b76533exv99w1.htm EX-99.1 PRESS RELEASE DATED JULY 30, 2009 exv99w1
Exhibit 99.1
(EVERGREENSOLAR LOGO)
PRESS RELEASE
Evergreen Solar Announces 2009 Second Quarter Results
Devens Factory Ships 23.2 MW, Up 34% Sequentially
Marlboro, Massachusetts, July 30, 2009 — Evergreen Solar, Inc. (NasdaqGM: ESLR), a manufacturer of String Ribbon™ solar power products with its proprietary, low-cost silicon wafer technology, today announced financial results for the second quarter ended July 4, 2009.
“We continue to ramp our production at Devens in line with market demand,” stated Richard M. Feldt, Chairman, CEO and President. “We shipped 23.2 MW at an average price of $2.70 per watt compared to the 17.3 MW sold at $3.13 per watt during the first quarter. The momentum we are building keeps us on track to achieve our $2.00 per watt goal when Devens reaches its 40 MW of quarterly capacity. Additionally, we are now identifying cost improvement programs that we believe will gradually take us to about $1.50 per watt at full factory capacity in the next two years.”
“Our financial and market positions are strong and, with our recently completed contract manufacturing agreement with Jiawei, we remain confident in our ability to be well positioned when the industry returns to significant growth as fundamental structural issues like those facing global credit markets begin to resolve,” concluded Mr. Feldt.
Second Quarter 2009 Financial Results
Revenues for the second quarter of 2009 were $63.8 million, including $1.1 million of fees from our Sovello joint venture, compared to $55.8 million for the first quarter of 2009, including $1.4 million of fees and $22.8 million for the second quarter of 2008, including $4.6 million of fees.
Gross margin for the second quarter of 2009 was 1.9%, compared to 1.2% for the first quarter of 2009 and 34.7% for the second quarter of 2008. The decrease from the prior year period was the result of lower selling prices, lower fees from the Sovello joint venture, and higher initial costs related to the ramp in production at Devens.
Net loss for the second quarter of 2009 was $20.3 million, or $0.11 per share, and includes on-going charges associated with our Marlboro pilot facility closure and Midland facility start-up costs of $1.5 million. Net loss for the second quarter also includes equity losses of $5.3 million, representing our share of losses incurred by Sovello during the quarter. Sovello losses increased substantially during the second quarter primarily due to lower sales volume and lower average selling prices. Weighted average shares outstanding for the second quarter increased as the result of our successful common stock offering, resulting in net proceeds of $72.8 million.
Net loss for the first quarter of 2009 was $64.3 million, or $0.40 per share, and includes charges of $43.9 million for the write-off of our loan receivable and related interest from a future silicon supplier, $3.5 million of facility start-up costs for the second phase of Devens and Midland string factory, and $1.8 million of on-going costs associated with the closure of the Marlboro pilot facility.

 


 

Conference Call Information
Management will conduct a conference call at 5:00 p.m. (ET) today to review the Company’s second quarter financial results and highlights. The call will be webcast live over the Internet and can be accessed by logging on to the “Investors” section of Evergreen Solar’s website, www.evergreensolar.com prior to the event.
The call also can be accessed by dialing (877) 704-5379 or (913) 312-1270 (International) prior to the start of the call. For those unable to join the live conference call, a replay will be available from 8:00 p.m. (ET) on July 30 through 8:00 p.m. (ET) on August 7. To access the replay, dial (888) 203-1112 or (719) 457-0820 and refer to confirmation code 7684219.
About Evergreen Solar, Inc.
Evergreen Solar, Inc. develops, manufactures and markets String Ribbon™ solar power products using its proprietary, low-cost silicon wafer technology. The Company’s patented wafer manufacturing technology uses significantly less polysilicon than conventional processes. Evergreen Solar’s products provide reliable and environmentally clean electric power for residential and commercial applications globally. For more information about the Company, please visit www.evergreensolar.com. Evergreen Solar® and String Ribbon™ are trademarks of Evergreen Solar, Inc.
Safe Harbor Statement
This press release contains forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. These statements are based on management’s current expectations or beliefs. Such forward-looking statements include, but are not limited to, those related to expectations regarding our ability to significantly reduce our manufacturing costs and increase the capacity at our Devens facility; our ability generally to manufacture and sell our products and the potential benefits of our contract manufacturing relationship with Jiawei. These statements are neither promises nor guarantees, and involve risks and uncertainties that could cause actual results to differ materially from such forward-looking statements, including risks associated with the company’s ability to lower manufacturing costs and otherwise successfully manufacture and sell its products; uncertainties related to government regulations, subsidies and incentives; risks from various economic factors such as credit market conditions, fluctuations in currency exchange rates and other risks and uncertainties identified in the company’s filings with the Securities and Exchange Commission. Evergreen Solar disclaims any obligation to update or revise such statements to reflect any change in company expectations, or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.
CONTACT:
Evergreen Solar, Inc.
Michael McCarthy
Director — Investor Relations
mmccarthy@evergreensolar.com
Phone: 508-251-3261

 


 

Evergreen Solar, Inc. (Nasdaq: ESLR)
Condensed Consolidated Statements of Operations (a)
(in thousands, except per share data)
(Unaudited)
                                 
    Quarter Ended     Year-to-Date Period Ended  
    June 28, 2008     July 4, 2009     June 28, 2008     July 4, 2009  
Product revenues
  $ 18,118     $ 62,697     $ 36,377     $ 117,136  
Royalty and fee revenues
    4,638       1,141       9,326       2,508  
 
                       
Total revenues
    22,756       63,838       45,703       119,644  
Cost of revenues
    14,863       62,628       30,094       117,750  
 
                       
Gross profit
    7,893       1,210       15,609       1,894  
 
                       
Operating expenses:
                               
Research and development
    5,887       4,444       10,830       8,890  
Selling, general and administrative
    5,894       6,742       10,886       13,118  
Write-off of loan receivable from silicon supplier
                      43,882  
Facility start-up
    8,573       687       11,992       4,146  
Restructuring charges
    2,708       825       4,570       2,617  
 
                       
Total operating expenses
    23,062       12,698       38,278       72,653  
 
                       
 
                               
Operating loss
    (15,169 )     (11,488 )     (22,669 )     (70,759 )
 
                               
Other income (expense):
                               
Foreign exchange gains (losses), net
    (158 )     1,681       3,656       982  
Interest income
    2,735       1,341       5,762       3,554  
Interest expense
    (46 )     (6,532 )     (362 )     (11,912 )
 
                       
Other income (expense), net
    2,531       (3,510 )     9,056       (7,376 )
 
                       
Loss before equity income (loss) from interest in Sovello AG
    (12,638 )     (14,998 )     (13,613 )     (78,135 )
Equity income (loss) from interest in Sovello AG
    3,716       (5,340 )     4,666       (6,492 )
 
                       
Net loss
  $ (8,922 )   $ (20,338 )   $ (8,947 )   $ (84,627 )
 
                       
 
                               
Net loss per share:
                               
Basic
  $ (0.08 )   $ (0.11 )   $ (0.08 )   $ (0.49 )
Diluted
  $ (0.08 )   $ (0.11 )   $ (0.08 )   $ (0.49 )
 
                               
Weighted average shares used in computing basic and diluted net loss per share:
                               
Basic
    118,327       180,745       113,625       171,163  
Diluted
    118,327       180,745       113,625       171,163  
 
(a)   On January 1, 2009, the Company adopted FSP No. APB 14-1 “Accounting for Convertible Debt Instruments That May Be Settled in Cash Upon Conversion (Including Partial Cash Settlement)” concerning convertible debt accounting and FSP EITF 03-6-1 “Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities” concerning the calculation of earnings per share. These rules require restatement of prior periods to conform to current accounting.

 


 

Evergreen Solar, Inc. (Nasdaq: ESLR)
Condensed Consolidated Balance Sheets (a)
(in thousands, except share data)
(Unaudited)
                 
    December 31,        
    2008     July 4, 2009  
    (Adjusted)          
Assets
               
Current assets:
               
Cash and cash equivalents
  $ 100,888     $ 83,474  
Marketable securities
    76,621       2,674  
Accounts receivable, net of allowances for doubtful accounts
    35,458       61,559  
Due from Sovello AG
    1,949       3,306  
Inventory
    23,500       29,524  
Prepaid cost of inventory
    11,696       16,176  
VAT receivable, net
    1,474       1,495  
Other current assets
    7,684       7,892  
 
           
Total current assets
    259,270       206,100  
 
               
Investment in and advances to Sovello AG
    115,553       122,984  
Restricted cash
    212       3,128  
Deferred financing costs
    6,152       5,460  
Loan receivable from silicon supplier
    41,757        
Prepaid cost of inventory
    172,193       160,480  
Fixed assets, net
    406,191       442,634  
Other assets
    3,579       366  
 
           
 
               
Total assets
  $ 1,004,907     $ 941,152  
 
           
 
               
Liabilities and stockholders’ equity
               
Current liabilities:
               
Accounts payable and accrued expenses
  $ 62,652     $ 22,732  
Due to Sovello AG
    22,840       1,802  
Accrued employee compensation
    6,451       5,861  
Accrued interest
    7,392       7,024  
Accrued warranty
    1,182       1,765  
 
           
Total current liabilities
    100,517       39,184  
 
               
Senior convertible notes, net of discount
    311,531       317,267  
Deferred income taxes
    9,776       9,496  
 
           
Total liabilities
    421,824       365,947  
Commitments and contingencies
               
 
               
Stockholders’ equity:
               
Common stock, $0.01 par value, 250,000,000 shares authorized, 164,874,850 and 208,277,378 issued and outstanding at December 31, 2008 and July 4, 2009, respectively
    1,649       2,083  
Additional paid-in capital
    803,491       879,496  
Accumulated deficit
    (223,687 )     (308,314 )
Accumulated other comprehensive income (loss)
    1,630       1,940  
 
           
 
               
Total stockholders’ equity
    583,083       575,205  
 
           
 
               
Total liabilities and stockholders’ equity
  $ 1,004,907     $ 941,152  
 
           
 
(a)   On January 1, 2009, the Company adopted FSP No. APB 14-1 “Accounting for Convertible Debt Instruments That May Be Settled in Cash Upon Conversion (Including Partial Cash Settlement).” The rule requires restatement of prior periods to conform to current accounting.