Sky Solar Holdings, Ltd. Reports First Quarter 2015 Unaudited Financial Results
Q1 2015 total revenue of
$10.3 million, up 64.5% over Q1 2014
Q1 2015 Adjusted EBITDA of
$7.0 million, compared to $0.9 millionin Q1 2014
92.7 MW of IPP assets in operation as of
March 31, 2015, compared to 65.2 MW as of December 31, 2014
- 28.4 MW of solar parks connected during Q1 2015
1.3 GW of projects in pipeline as of
March 31, 2015, including 19.5 MW under construction, 283.8 MW of shovel-ready projects and 1.0 GW of solar parks under development
$7.4 millionproject refinancing in Japanraised
Mr. Su continued, "Meanwhile, we continue to seek strategic financing opportunities to fuel our pipeline growth. As we previously announced, Mr.
First Quarter 2015 Financial Results
Net revenue was
The following table shows the Company's sequential and year-over-year growth in revenue for each segment, region and period indicated.
|(US$ in thousands, except percentages)|
|System Sales and Other||4,099||136.5%||1,733||4,666.3%||86|
|System Sales and Other||440||-67.8%||1,365||-32.9%||654|
|System Sales and Other||589||-63.4%||1,611||6.9%||551|
|System Sales and Other||5,128||8.9%||4,709||297.2%||1,291|
Cost of sales and services was
Gross profit was
Selling and administrative ("SG&A") expenses were
Operating income was
Net income was
Basic and diluted earnings per share were
Adjusted EBITDA was
The Company had 19.5 MW of projects under construction at the end of the quarter, compared to 47.5 MW under construction at the end of 2014. The majority of projects under construction were in
In total, the Company had 1.3 GW of projects in various stages of development, which include the projects under construction described above as well as 283.8 MW of shovel-ready projects and more than 1.0 GW of pipeline in earlier development stages.
During the fourth quarter of 2014, the Company announced its intention to enter the
In addition, during the three months ended
Balance Sheet and Liquidity
Use of Non-IFRS Measures
To provide investors with additional information regarding the Company's financial results, the Company has disclosed Adjusted EBITDA, a non-IFRS financial measure, below. The Company presents this non-IFRS financial measure because it is used by the Company's management to evaluate its operating performance. The Company also believes that this non-IFRS financial measure provides useful information to investors and others in understanding and evaluating the Company's consolidated results of operations in the same manner as the Company's management and in comparing financial results across accounting periods and to those of its peers.
Adjusted EBITDA, as the Company presents it, represents profit or loss for the period before taxes, depreciation and amortization, adjusted to eliminate the impact of share-based compensation expenses, interest expenses, impairment losses, IPO expenses and charges of fair value changes of financial liabilities.
The use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of the Company's financial results as reported under IFRS. Some of these limitations are: (a) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; (b) Adjusted EBITDA does not reflect changes in, or cash requirements for, the Company's working capital needs; (c) Adjusted EBITDA does not reflect the potentially dilutive impact of equity-based compensation; (d) Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to the Company; and (e) other companies, including companies in the Company's industry, may calculate Adjusted EBITDA or similarly titled measures differently, which reduces their usefulness as a comparative measure. Because of these and other limitations, you should consider Adjusted EBITDA alongside the Company's other IFRS-based financial performance measures, such as profit (loss) for the period and the Company's other IFRS financial results.
The following table presents a reconciliation of Adjusted EBITDA to profit (loss) for the period, the most directly comparable IFRS measure, for each of the periods indicated:
Three months ended
|(US$ in thousands)|
|Profit (loss) for the period||2,587||(5,681)|
|Income tax expense||(78)||774|
|Depreciation of property, plant and equipment||1,691||1,375|
|Share-based payment charged into profit or loss||180||170|
|Impairment loss on IPP solar parks||42||1,285|
|Impairment loss on amounts due from other related parties||--||2,201|
|Fair value changes of financial liabilities-FVTPL||1,650||--|
The Company does not consider historical Adjusted EBITDA to be representative of future Adjusted EBITDA, as the Company's revenue model changed from primarily generating revenue from selling solar energy systems to primarily generating revenue from selling electricity in the fourth quarter of 2013. The Company believes that Adjusted EBITDA is an important measure for evaluating the results of its IPP business.
These measures are not intended to represent or substitute numbers as measured under IFRS. The submission of non-IFRS numbers is voluntary and should be reviewed together with IFRS results.
Unless specifically indicated or the context otherwise requires, megawatt capacity values in this earnings release refer to the attributable capacity of a solar park. We calculate the attributable capacity of a solar park by multiplying the percentage of our equity ownership in the solar park by the total capacity of the solar park.
Dial-in details for the live conference call are as follows:
A simultaneous live webcast will be available on the Investor Relations section of the Company's website at www.skysolargroup.com.
A telephone replay will be available approximately two hours after the call concludes through
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this press release and the Company's operations and business outlook contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in
1 Adjusted EBITDA is a non-IFRS measure used by the Company to better understand its results. The Company urges you to study the reconciliation between IFRS net income and adjusted EBITDA provided in this release.
Sky Solar Holdings Ltd.
Condensed Consolidated Statements of Operations
USD In Thousands, Except Per Share Amounts
|Three Months Ended March 31,|
|Electricity generation income||5,124||4,942|
|Solar energy system and other sales||5,128||1,291|
|Cost of sales and services||(3,071)||(3,437)|
|Impairment loss on IPP solar parks||(42)||(1,285)|
|Provision on receivables||—||(2,201)|
|Other operating income||42||1,338|
|Profit (loss) from operations||2,824||(4,628)|
|Other non-operating expenses||485||342|
|Profit (loss) before taxation||2,508||(4,907)|
|Income tax expense||78||(774)|
|Profit (loss) for the period||2,586||(5,681)|
|Other comprehensive (expense) income that may be subsequently reclassified to profit or loss:|
|Exchange differences on translation of financial statements of foreign operations||(11,969)||(308)|
|Total comprehensive income (expense) for the year||(9,383)||(5,989)|
|Profit (loss) for the year attributable to owners of the Company||2,586||(5,681)|
|Profit (loss) for the year attributable to non-controlling interests||—||—|
|Total comprehensive income (expense) attributable to:|
|Owners of the Company||(9,383)||(5,880)|
|Profit (loss) per share — Basic||0.01||(0.02)|
|Profit (loss) per share — Diluted||0.01||(0.02)|
|Profit (loss) per ADS — Basic||0.05||(0.13)|
|Profit (loss) per ADS — Diluted||0.05||(0.13)|
Sky Solar Holdings Ltd.
Condensed Consolidated Balance Sheets
USD In Thousands, Except Per Share Amounts
|December 31, 2014||March 31, 2015|
|Bank balances and cash||52,993||20,052|
|Amounts due from customers for contract work||—||68|
|Amounts due from related parties||15,175||14,771|
|Trade and other receivables||20,321||20,973|
|IPP solar parks||180,610||202,008|
|Other non-current assets||13,480||16,164|
|Trade and other payables||60,297||60,416|
|Amount due to related parties||2,148||5,421|
|Amounts due to customers for contract work||1,194||—|
|Other non-current liabilities||47,032||49,040|
|Total assets less total liabilities||123,749||114,523|
|Equity attributable to owners of the Company||123,716||114,476|
|Total liabilities and equity||289,586||277,874|
CONTACT: Company: IR@skysolarholding.com Investor Relations:
ICR, LLC Victor Kuo+86 (10) 6583-7526 Victor.firstname.lastname@example.org