STR Holdings, Inc. (NYSE:STRI) today announced its financial
results for the first quarter ended March 31, 2015.
Advisory Note
All prior year share amounts and per share amounts below have
been adjusted to reflect the one-for-three reverse stock split
effected January 30, 2015.
First Quarter 2015 Summary:
- Finalized one-for-three stock split effective January 30,
2015
- Net sales of $6.9 million
- Diluted GAAP loss per share from continuing operations of
$(0.14); Diluted non-GAAP loss per share from continuing operations
of $(0.13)
- Adjusted EBITDA of $(1.8) million
- Finished the quarter with $13.3 million in cash, $8.3 million
in tax receivables and no debt
Zhenfa Coordination Update
Capacity Expansion
In a separate transaction coincident with the recent sale of 51%
of the Company's common shares to a subsidiary of Zhenfa Energy
Group Co., Ltd. (the "Zhenfa Transaction"), the Company and Zhenfa
entered into a Sales Service Agreement. Under this agreement,
Zhenfa will allow STR to use certain of its existing production
facilities, free of charge for five years followed by rent at 50%
of the then-current market rate, to expand STR's encapsulant
production capacity in China. Pursuant to this agreement, the
Company has selected a 110,000 square foot facility in Wuxi,
Jiangsu Province. The Company has chosen this building due to its
suitability for conversion to an encapsulant factory and its
convenient location, which is central to many major Chinese module
manufacturers and is close to both Zhenfa's corporate offices and
STR's existing facility in Shajiabang. The Wuxi building can
accommodate up to nine gigawatts of encapsulant production
capacity.
Zhenfa has advised the Company that it will finance building
improvements, ancillary equipment, one gigawatt of new production
equipment and the upgrade of an additional gigawatt of STR's
existing production equipment, all according to STR's
specifications. The Company expects the Wuxi facility to be
available for production by the end of 2015.
STR and Zhenfa are currently negotiating an arm's length lease
agreement wherein STR will reimburse Zhenfa over time for its
investment in the Wuxi facility. Investments made to date are
solely at Zhenfa's risk.
The Company is under no obligation to lease this facility, and
any such transaction would be subject to review by the Company's
executive management team and the approval of the Company's Special
Committee of Continuing Directors.
Business Development
In May, the Company also entered into a module-for-encapsulant
swap transaction with Zhenfa and Zhejiang ReneSola Jiangsu Co.,
Ltd. ("ReneSola") to settle outstanding accounts. As part of this
three-party transaction, the Company has agreed to accept solar
modules as settlement of approximately $7.4 million of outstanding
receivables from ReneSola, and Zhenfa has agreed to purchase these
modules from the Company for $7.4 million.
"We are very pleased to report tangible benefits flowing from
cooperative efforts with our primary stockholder," stated Robert S.
Yorgensen, STR's Chairman, President and Chief Executive Officer.
"We believe our innovative module-for-EVA swap demonstrates a
competitive advantage that can not only be used to collect aged
receivables but can also drive future sales volume. The value
proposition of this approach is to provide module manufacturers
with high-quality, bankable encapsulants, while also increasing
their module sales and enabling payment with module inventory
rather than cash, thereby improving liquidity. In addition,
Zhenfa's willingness to invest in production capacity to supplement
STR's current Shajiabang facility and that of our tolling partner
is further evidence of Zhenfa's commitment and ability to assist
STR in growing our encapsulant business in China."
Financial Results
Net sales for the quarter ended March 31, 2015 were $6.9
million, a decrease of 26% sequentially and a decrease of 26% from
Q1 2014. The sequential decrease was driven by approximately 19%
lower volume and a 9% decline in average selling price ("ASP"). The
sequential ASP decline was primarily caused by foreign exchange
translation of the Euro compared to the U.S. Dollar, which is the
Company's reporting currency. The average Euro exchange rate
decreased by 9% in the first quarter of 2015 compared to the fourth
quarter of 2014. Ex-currency impact, our ASP declined by 3% during
this period. The sequential volume decline was driven by a first
quarter 2015 interruption in sales to a Chinese customer that had
ramped sharply in the fourth quarter of 2014. The Company expects
to resume shipments to this customer in the second quarter of 2015.
In addition, one of our European customers declared
self-administered insolvency in the first quarter of 2015. This
European customer has since resumed operations and ordering our
encapsulants after a brief period of inactivity.
On a year-over-year basis, our net sales declined $2.4 million
or 26%. The year-over-year decrease was driven by approximately 10%
lower volume and a 19% decline in average selling price ("ASP").
The price decline was caused by foreign exchange translation of the
Euro compared to the U.S. Dollar. The average Euro exchange rate
decreased by 17% in the first quarter of 2015 compared to the
corresponding 2014 period. Ex-currency impact, our ASP declined by
9% driven by continued pricing pressure. The volume decline was
driven by a reduction of net sales to our largest customer, which
modified its OEM partner footprint in the latter part of 2014, and
by one of our European customers declaring insolvency in the first
quarter of 2015 as discussed above.
Gross loss for the first quarter of 2015 was $(0.1) million, or
(2)% of net sales, which included $0.1 of restructuring costs,
compared to $(2.3) million, or (25)% of net sales, from the fourth
quarter of 2014 and gross loss of $(0.7) million, or (7)% of net
sales from the first quarter of 2014. When removing the impact of
$1.4 million of special items in the fourth quarter of 2014 as
previously disclosed, gross loss improved by $0.8 million. The
sequential improvement in gross loss was driven by lower resin
pricing due to the recent decline in the price of oil, improved
yield and increased raw material efficiency, including improved
sales mix of our paperless encapsulants. These positive impacts
were partially offset by sequentially lower net sales.
Selling, general and administrative expenses for the first
quarter of 2015 were $2.6 million compared to $5.0 million in the
fourth quarter of 2014 and $3.0 million in the first quarter of
2014. The sequential decrease was driven by $2.9 million of special
items in the fourth quarter of 2014 that did not recur in the first
quarter of 2015. When removing the impact of these special items
(as previously disclosed), SG&A increased $0.5 million due to
$0.3 million of higher annual incentive compensation expense and
$0.3 million of higher professional fees, partially offset by
benefits from prior cost-reduction actions. The year-over-year
decrease of $0.4 million was primarily driven by $0.5 million of
lower stock-based compensation expense due to cancelling all
previously granted options in the fourth quarter of 2014 and $0.2
million of cost-reduction benefits from selling our East Windsor,
Connecticut facility in 2014. These positive impacts were partially
offset by $0.2 million of higher annual incentive compensation
expense and $0.1 million of increased professional fees.
Adjusted EBITDA for the first quarter of 2015 was $(1.8) million
compared to $(5.7) million from the fourth quarter of 2014. When
removing the impact of the $3.3 million of Q4 2014 special items
(as previously disclosed), adjusted EBITDA improved by $0.6
million. Favorable foreign currency transactional gains drove $0.2
million of this improvement. Ex-currency, our sequential
improvement was due to our improvement in gross loss as discussed
above, which more than offset higher SG&A (ex-special items)
and lower net sales. This compares to Adjusted EBITDA from
continuing operations of $(2.9) million for the first quarter of
2014. The improvement in 2015 is driven by favorable foreign
exchange impact, improved gross loss and lower SG&A that more
than offset lower net sales.
Net loss from continuing operations for the first quarter of
2015 was $(2.6) million, or $(0.14) per diluted share. This
compares to a net loss from continuing operations of $(13.2)
million, or $(1.36) per diluted share, for the fourth quarter of
2014 and net loss from continuing operations of $(4.6) million, or
$(0.35) per diluted share, for the first quarter of 2014. The
sequentially lower net loss of $10.6 million was due to the special
items described above not recurring in 2015, improved adjusted
EBITDA and $6.3 million of lower income tax expense. The Q4 2014
higher income tax expense was driven by recording non-cash
valuation allowances on the Company's deferred tax assets as of
December 31, 2014. On a year-over-year basis, net loss from
continuing operations decreased by $2.0 million compared to the
corresponding 2014 period driven by reduced gross loss and SG&A
and favorable impact from foreign currency.
Non–GAAP net loss from continuing operations for the first
quarter of 2015, which excludes certain tax-effected adjustments
(as disclosed following the non–GAAP reconciliation table at the
end of this press release), was $(2.4) million, or $(0.13) per
diluted share. This compares to non–GAAP net loss from continuing
operations of $(12.8) million, or $(1.32) per diluted share, for
the fourth quarter of 2014 and non–GAAP net loss from continuing
operations of $(3.2) million, or $(0.24) per diluted share, for the
first quarter of 2014.
Operations Update
The Company has substantially completed the renovation of its
Enfield, Connecticut facility including its research and
development laboratory. In addition, the Company's newly opened
Suzhou facility has achieved ISO 9001 certification.
The Company continues to retrofit its existing production
equipment to produce low-shrink paperless encapsulants and has
attained a product mix of approximately 65% paperless in the first
quarter of 2015. The Company expects to continue to increase its
product mix to the paperless configuration during 2015.
Balance Sheet and Liquidity
The Company finished the quarter with $13.3 million of cash and
no debt. As of March 31, 2015, the Company also had $8.3 million of
income tax receivables.
The Company generated negative operating cash flow of $1.7
million during the first quarter of 2015. With Zhenfa's assistance,
the Company is currently exploring working capital financing to
support expected sales volume growth.
"During the first quarter we were able to improve our adjusted
EBITDA burn," stated Joseph C. Radziewicz, STR's Vice President and
Chief Financial Officer. "Ex-restructuring, we were also close to
achieving break-even gross profit. We are implementing additional
cost-reduction actions in the second quarter that we believe will
further improve our financial results going
forward."
First Quarter Conference Call and
Presentation
The Company will discuss its financial results in a conference
call today at 9:00 am ET. A live webcast of the conference call and
presentation will be available through the Investor Relations
section of the Company's website at www.strsolar.com. Investors in
the U.S. interested in participating in the live call should dial
(877) 312-8789 and enter passcode: 24375197. Those calling from
outside the U.S. should dial (970) 315-0282 and use the same
passcode. A telephone replay will be available at 12:00 p.m. ET
through Wednesday, May 20, 2015 by dialing (855) 859-2056 from the
U.S., or (404) 537-3406 from international locations, and entering
passcode: 24375197. The webcast and presentation will be archived
on the Company's website for one year.
About STR Holdings, Inc.
STR Holdings, Inc. is a provider of encapsulants to the
photovoltaic module industry. Further information about STR
Holdings, Inc. can be obtained via the Company's website at
www.strsolar.com.
Forward-Looking Statements
This press release contains forward‑looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements are subject to inherent risks and
uncertainties. These forward‑looking statements present the
Company's current expectations and projections relating to its
financial condition, results of operations, plans, objectives,
future performance and business and are based on assumptions that
it has made in light of the Company's industry experience and
perceptions of historical trends, current conditions, expected
future developments and other factors management believes are
appropriate under the circumstances. However, these forward‑looking
statements are not guarantees of future performance or financial or
operating results. Forward-looking statements include, but are not
limited to, the statements regarding the following: (1) incurring
substantial losses for the foreseeable future and the Company's
inability to achieve or sustain profitability in the future; (2)
the potential impact of pursuing strategic alternatives, including
dissolution and liquidation of our Company; (3) our reliance on a
single product line; (4) our securing sales to new customers,
growing sales to existing key customers and increasing our market
share, particularly in China; (5) customer concentration in our
business and our relationships with and dependence on key
customers; (6) the outsourcing arrangements and reliance on third
parties for the manufacture of a portion of our encapsulants; (7)
technological changes in the solar energy industry or our failure
to develop and introduce or integrate new technologies could render
our encapsulants uncompetitive or obsolete; (8) competition; (9)
excess capacity in the solar supply chain; (10) demand for solar
energy in general and solar modules in particular; (11) our
operations and assets in China being subject to significant
political and economic uncertainties; (12) limited legal recourse
under the laws of China if disputes arise; (13) our ability to
adequately protect our intellectual property, particularly during
the outsource manufacturing of our products in China; (14) our lack
of credit facility and our inability to obtain credit; (15) a
significant reduction or elimination of government subsidies and
economic incentives or a change in government policies that promote
the use of solar energy, particularly in China and the United
States; (16) volatility in commodity costs; (17) our customers'
financial profile causing additional credit risk on our accounts
receivable; (18) our dependence on a limited number of third‑party
suppliers for raw materials for our encapsulants and other
significant materials used in our process; (19) potential product
performance matters and product liability; (20) our substantial
international operations and shift of business focus to emerging
markets; (21) the impact of changes in foreign currency exchange
rates on financial results, and the geographic distribution of
revenues; (22) losses of financial incentives from government
bodies in certain foreign jurisdictions; (23) compliance with the
Continued Listing Criteria of the NYSE; (24) the ability to realize
synergies from the transaction with Zhenfa Energy Group Co., Ltd.,
and (25) the other risks and uncertainties described under "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" and in subsequent periodic
reports on Form 10-K, 10-Q and 8-K. You are urged to carefully
review and consider the disclosure found in our filings which are
available on http://www.sec.gov or http://www.strsolar.com. Should
one or more of these risks or uncertainties materialize, or should
any of these assumptions prove to be incorrect, actual results may
vary materially from those projected in these forward‑looking
statements. We undertake no obligation to publicly update any
forward‑looking statement contained in this press release whether
as a result of new information, future developments or otherwise,
except as may be required by law.
|
|
STR Holdings,
Inc. |
CONDENSED CONSOLIDATED
INCOME STATEMENTS |
All amounts in
thousands except shares and per share amounts |
|
|
|
|
Three Months Ended
March 31, |
|
2015 |
2014 |
|
(Unaudited) |
(Unaudited) |
|
|
|
Net sales |
$ 6,863 |
$ 9,336 |
Cost of sales |
7,009 |
10,017 |
|
|
|
Gross loss |
(146) |
(681) |
|
|
|
Selling, general and administrative
expenses |
2,582 |
2,975 |
Research and development expense |
352 |
256 |
(Recovery) provision for bad debt
expense |
(43) |
24 |
Operating loss |
(3,037) |
(3,936) |
|
|
|
Interest income, net |
4 |
4 |
Loss on disposal of fixed assets |
-- |
(433) |
Foreign currency transaction gain
(loss) |
480 |
(138) |
Loss from continuing operations
before income tax expense |
(2,553) |
(4,503) |
Income tax expense from continuing
operations |
53 |
139 |
Net loss from continuing
operations |
(2,606) |
(4,642) |
|
|
|
Discontinued operations: |
|
|
Earnings from discontinued
operations before income tax expense |
-- |
-- |
Income tax benefit from discontinued
operations |
-- |
-- |
Net earnings from discontinued
operations |
-- |
-- |
|
|
|
Net loss |
$ (2,606) |
$ (4,642) |
|
|
|
GAAP loss per share: |
|
|
Basic from continuing
operations |
$ (0.14) |
$ (0.35) |
Basic from discontinued
operations |
-- |
-- |
Total basic GAAP net loss per
share |
$ (0.14) |
$ (0.35) |
|
|
|
Diluted from continuing
operations |
$ (0.14) |
$ (0.35) |
Diluted from discontinued
operations |
-- |
-- |
Total diluted GAAP net loss per
share |
$ (0.14) |
$ (0.35) |
|
|
|
(1) Non-GAAP net loss per
share: |
|
|
Basic from continuing
operations |
$ (0.13) |
$ (0.24) |
Basic from discontinued
operations |
-- |
-- |
Total basic non-GAAP net loss
per share |
$ (0.13) |
$ (0.24) |
|
|
|
Diluted from continuing
operations |
$ (0.13) |
$ (0.24) |
Diluted from discontinued
operations |
-- |
-- |
Total diluted non-GAAP net loss
per share |
$ (0.13) |
$ (0.24) |
|
|
|
Weighted-average common shares
outstanding: |
|
|
Basic shares outstanding
GAAP |
18,070,384 |
13,412,904 |
(2) Diluted shares outstanding
GAAP |
18,070,384 |
13,412,904 |
Stock options |
-- |
-- |
Restricted common stock |
-- |
-- |
(2) Diluted shares outstanding
non-GAAP |
18,070,384 |
13,412,904 |
|
|
|
(1) Please refer to the
reconciliation of non-GAAP measures included in this press
release. |
(2) Please refer to the
reconciliation of diluted shares outstanding for non-GAAP net loss
per share included in this press release. |
|
|
STR Holdings,
Inc. |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
All amounts in
thousands |
|
|
|
|
March 31, 2015 |
December 31,
2014 |
|
(Unaudited) |
(Audited) |
ASSETS |
|
|
CURRENT ASSETS |
|
|
Cash and cash equivalents |
$ 13,268 |
$ 16,552 |
Accounts receivable, net |
13,016 |
12,057 |
Income tax receivable |
8,252 |
8,252 |
Inventories, net |
7,690 |
8,248 |
Other current assets |
5,117 |
4,144 |
Total current assets |
47,343 |
49,253 |
|
|
|
Property, plant and equipment,
net |
20,201 |
20,195 |
Other noncurrent assets |
342 |
354 |
Total assets |
$ 67,886 |
$ 69,802 |
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
CURRENT LIABILITIES |
|
|
Accounts payable |
$ 3,607 |
$ 2,653 |
Accrued liabilities |
4,045 |
2,780 |
Other current liabilities |
-- |
204 |
Income taxes payable |
1,877 |
1,865 |
Total current liabilities |
9,529 |
7,502 |
|
|
|
Long-term
liabilities |
4,627 |
4,577 |
Total liabilities |
14,156 |
12,079 |
|
|
|
STOCKHOLDERS' EQUITY |
|
|
Stockholders' equity |
53,730 |
57,723 |
Total liabilities and stockholders'
equity |
$ 67,886 |
$ 69,802 |
|
|
STR Holdings,
Inc. |
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
All amounts in
thousands |
|
|
|
|
Three Months Ended
March 31, |
|
2015 |
2014 |
|
(Unaudited) |
(Unaudited) |
OPERATING ACTIVITIES |
|
|
Net loss |
$ (2,606) |
$ (4,642) |
Net earnings from discontinued
operations |
-- |
-- |
Net loss from continuing operations |
(2,606) |
(4,642) |
Adjustments to reconcile net loss to net cash
used in operating activities: |
|
|
Depreciation |
490 |
511 |
Stock-based compensation expense |
153 |
613 |
Loss on disposal of property, plant and
equipment |
-- |
433 |
(Recovery) provision for bad debt
expense |
(43) |
24 |
Income tax receivable non-cash |
-- |
(922) |
Deferred income tax expense |
-- |
1,057 |
Changes in operating assets and
liabilities |
(921) |
(1,150) |
Other, net |
1,255 |
(831) |
Net cash used in continuing operations |
(1,672) |
(4,907) |
Net cash provided by discontinued
operations |
9 |
-- |
Total net cash used in operating
activities |
(1,663) |
(4,907) |
|
|
|
INVESTING ACTIVITIES |
|
|
Capital investments |
(1,392) |
(946) |
Net cash used in continuing operations |
(1,392) |
(946) |
Net cash used in discontinued operations |
-- |
-- |
Total net cash used in investing
activities |
(1,392) |
(946) |
|
|
|
FINANCING ACTIVITIES |
|
|
Repurchase of common stock in tender
offer |
-- |
(25,836) |
Special dividend |
(20) |
-- |
Proceeds from common stock issued under
employee stock purchase plan |
1 |
1 |
Net cash used in continuing operations |
(19) |
(25,835) |
Net cash used in discontinued operations |
-- |
-- |
Total net cash used in financing
activities |
(19) |
(25,835) |
|
|
|
Effect of exchange rate changes on cash |
(210) |
(28) |
|
|
|
Net change in cash and cash
equivalents |
(3,284) |
(31,716) |
Cash and cash equivalents, beginning of
period |
16,552 |
58,173 |
Cash and cash equivalents, end of period |
$ 13,268 |
$ 26,457 |
|
|
|
SUPPLEMENTAL DISCLOSURE OF NON-CASH
INVESTING ACTIVITIES |
|
|
Proceeds to be received from sale of
land |
$ -- |
$ 1,912 |
|
|
|
* Free cash flow from continuing
operations |
$ (3,064) |
$ (5,853) |
|
|
|
|
|
|
* Please refer to the
reconciliation of non-GAAP measures included in this press
release. |
|
|
STR Holdings,
Inc. |
RECONCILIATION OF
NON-GAAP MEASURES |
All amounts in
thousands except shares and per share amounts |
|
|
|
|
|
Three Months Ended December
31, |
Three Months Ended
March 31, |
|
2014 |
2015 |
2014 |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
|
|
Non-GAAP Net Loss from Continuing
Operations |
|
|
|
Net loss from continuing operations |
$ (13,227) |
$ (2,606) |
$ (4,642) |
Adjustments to net loss from continuing
operations: |
|
|
|
Stock-based compensation
expense |
1,357 |
153 |
613 |
Restructuring |
374 |
145 |
27 |
Tax impact of option
cancellation due to restructuring |
-- |
-- |
1,058 |
Loss on reclassification on
held for sale assets |
(144) |
-- |
-- |
Spain grant reversal |
(974) |
-- |
-- |
Tax effect of non-GAAP
adjustments |
(206) |
(105) |
(215) |
Non-GAAP net loss from continuing
operations |
$ (12,820) |
$ (2,413) |
$ (3,159) |
|
|
|
|
Non-GAAP Net Loss from Discontinued
Operations |
|
|
|
Net loss from discontinued operations |
$ (199) |
$ -- |
$ -- |
Tax effect of non-GAAP
adjustments |
-- |
-- |
-- |
Non-GAAP net loss from discontinued
operations |
$ (199) |
$ -- |
$ -- |
|
|
|
|
Non-GAAP Net Loss Per Share from
Continuing Operations: |
|
|
|
Basic from continuing operations |
$ (1.32) |
$ (0.13) |
$ (0.24) |
Diluted from continuing operations |
$ (1.32) |
$ (0.13) |
$ (0.24) |
|
|
|
|
Non-GAAP Net Loss Per Share from
Discontinued Operations: |
|
|
|
Basic from discontinued operations |
$ (0.02) |
$ -- |
$ -- |
Diluted from discontinued operations |
$ (0.02) |
$ -- |
$ -- |
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding: |
|
|
|
Basic |
9,737,187 |
18,070,384 |
13,412,904 |
(1) Diluted |
9,737,187 |
18,070,384 |
13,412,904 |
|
|
|
|
(1) Please refer to the
reconciliation of diluted shares outstanding for non-GAAP net loss
per share included in this press release. |
|
|
|
|
|
Three Months
Ended March 31, |
|
|
2015 |
2014 |
|
|
(Unaudited) |
(Unaudited) |
|
Free Cash Flow from Continuing
Operations |
|
|
|
Cash flow used in operations from continuing
operations |
$ (1,672) |
$ (4,907) |
|
Less: |
|
|
|
Capital investments |
(1,392) |
(946) |
|
Free cash flow |
$ (3,064) |
$ (5,853) |
|
Non–GAAP Financial Measures
To supplement the Company's condensed consolidated financial
statements, which statements are prepared and presented in
accordance with generally accepted accounting principles in the
United States of America (GAAP), the Company uses non–GAAP
financial measures to facilitate better understanding of its
operating results. In this press release, there are two non–GAAP
financial metrics mentioned: (1) Non–GAAP net loss per share from
continuing operations ("Non–GAAP EPS") and (2) free cash flow from
continuing operations as defined below.
Non–GAAP EPS: The Company believes that
non–GAAP EPS from continuing operations provides meaningful
supplemental information regarding its performance by excluding
certain expenses that may not be indicative of the core business
operating results and may help in comparing current period results
with those of prior periods as well as with its peers.
Non–GAAP EPS from continuing operations is defined as net loss
from continuing operations not including the tax effected impact of
stock-based compensation and restructuring divided by the
weighted–average common shares outstanding. Please refer to the
Company's Form 10–K filed with the Securities and Exchange
Commission (SEC) on March 26, 2015, as well as prior SEC filings,
for detailed discussion on some of these adjustments that have been
recorded in previous periods. During the current period, there were
no new items.
Although the Company uses non–GAAP EPS as a measure to assess
the operating performance of its business, non–GAAP EPS has
significant limitations as an analytical tool because it excludes
certain material costs. Because non–GAAP EPS does not account for
these expenses, its utility as a measure of its operating
performance has material limitations. The omission of restructuring
and stock–based compensation expense limits the usefulness of this
measure. Non–GAAP EPS also adjusts for the related tax effects of
the adjustments and the payment of taxes is a necessary element of
the Company's operations. Because of these limitations, management
does not view non–GAAP EPS in isolation and uses other measures,
such as Adjusted EBITDA, net loss from continuing operations, net
sales, gross loss and operating loss, to measure operating
performance.
|
STR Holdings,
Inc. |
RECONCILIATION OF
NON-GAAP SHARES OUTSTANDING |
|
|
|
|
Three Months Ended December
31, |
Three Months Ended
March 31, |
|
2014 |
2015 |
2014 |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
Weighted-average shares
outstanding |
|
|
|
Basic shares outstanding
GAAP |
9,737,187 |
18,070,384 |
13,412,904 |
Diluted shares outstanding
GAAP |
9,737,187 |
18,070,384 |
13,412,904 |
Stock options |
-- |
-- |
-- |
Restricted common stock |
-- |
-- |
-- |
Diluted shares outstanding
non-GAAP |
9,737,187 |
18,070,384 |
13,412,904 |
Free Cash Flow from Continuing Operations: The
Company believes free cash flow from continuing operations is an
important measure of its overall liquidity and its ability to fund
future growth and provide a return to shareowners. Free cash flow
is defined as operating cash flow used in continuing operations
excluding cash spent on capital investments. A limitation of using
free cash flow versus the GAAP measure of cash used in operating
activities as a means for evaluating the Company's business is that
free cash flow does not represent the total increase or decrease in
the cash balance from operations for the period. The Company
compensates for this limitation by providing information about the
changes in its cash balance on the face of the Condensed
Consolidated Statements of Cash Flows.
|
STR Holdings,
Inc. |
ADJUSTED
EBITDA |
All amounts in
thousands |
|
|
|
|
|
Three Months Ended December
31, |
Three Months Ended
March 31, |
|
2014 |
2015 |
2014 |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
Adjusted EBITDA |
$ (5,724) |
$ (1,769) |
$ (2,923) |
Depreciation expense |
(538) |
(490) |
(511) |
Interest income, net |
4 |
4 |
4 |
Income tax expense |
(6,356) |
(53) |
(139) |
Spain grant reversal |
974 |
-- |
-- |
Loss on reclassification on held for sale
assets |
144 |
-- |
-- |
Restructuring |
(374) |
(145) |
(27) |
Stock-based compensation |
(1,357) |
(153) |
(613) |
Loss on disposal of fixed assets |
-- |
-- |
(433) |
Net loss from continuing
operations |
$ (13,227) |
$ (2,606) |
$ (4,642) |
ASC 280–10–50 Disclosure about Segment of an Enterprise and
Related Information, establishes standards for the manner in which
companies report information about operating segments, products,
geographic areas and major customers. The method of determining
what information to report is based on the way that management
organizes the operating segment within the enterprise for making
operating decisions and assessing financial performance. Since the
Company has one product line, sells to global customers in one
industry, procures raw materials from similar vendors and expects
similar long-term economic characteristics, the Company has one
reporting segment.
Adjusted EBITDA is the main metric used by the management team
and the Board of Directors to plan, forecast and review the
Company's segment performance. Adjusted EBITDA represents net loss
from continuing operations before interest income, income tax
expense, depreciation, stock-based compensation expense,
restructuring and certain non-recurring income and expenses from
the results of operations.
CONTACT: STR Holdings, Inc.
Joseph C. Radziewicz
Vice President and Chief Financial Officer
+1 (860) 265-1247
joseph.radziewicz@strholdings.com
Grafico Azioni STR (CE) (USOTC:STRI)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni STR (CE) (USOTC:STRI)
Storico
Da Giu 2023 a Giu 2024