Trina Solar Announces Receipt of Favorable Arbitration Award and Adjusts Fourth Quarter and Full Year 2013 Earnings Results
2014.03.19

CHANGZHOU, China, March 20, 2014 /PRNewswire/ -- Trina Solar Limited (NYSE: TSL) ("Trina Solar" or the "Company"), a global leader in photovoltaic ("PV") modules, solutions, and services, today announced it has received US$20.4 million from a customer in an arbitration settlement involving an outstanding account balance under a solar module purchase agreement. The arbitration panel determined that Trina Solar was entitled to US$20.4 million, which included the full amount of the outstanding accounts receivable of US$17.4 million sought by the Company, plus sales tax and accrued interests.

Ms. Teresa Tan, CFO of Trina Solar, said, "We are pleased to see that our efforts to pursue outstanding accounts receivable in overseas markets are delivering positive results. Sound financial management is a key focus for Trina Solar. We remain strongly committed to maintaining a healthy balance sheet to support Trina's long-term growth."

The arbitration fund was received subsequent to the Company's fourth quarter and full year 2013 earnings results. As a result, the accounts receivable provision of US$5.7 million for bad debt previously accrued has been reversed in the fourth quarter of 2013. Consequently, related financial numbers previously stated in the Company's fourth quarter and full year 2013 earnings release are being adjusted to reflect this event.

For a comparison of the difference in the financial numbers, please refer to the tables below. To access the Company's full adjusted financial results for the fourth quarter and full year 2013, please refer to the full income statements and balance sheets attached at the end of this press release.

Trina Solar Limited

Unaudited Condensed Consolidated Statements of Operations

(US dollars in thousands, except ADS and share data)

 
 

For the Three Months Ended 
Dec. 31, 2013

 

For Year Ended 
Dec. 31, 2013

Line Items

Adjusted

Previous

 

Adjusted

Previous

General and administrative expenses

19,741

25,445

 

103,523

109,228

Total operating expenses

59,314

65,018

 

256,273

261,978

Operating income (loss)

19,807

14,103

 

(38,079)

(43,784)

Income (loss) before income taxes

14,124

8,420

 

(85,266)

(90,971)

Net income (loss)

15,258

9,554

 

(72,236)

(77,940)

Net income (loss) attributable to Trina Solar Limited

15,464

9,760

 

(72,026)

(77,730)

Earnings (loss) per ADS

Basic

Diluted

 

0.22

0.21

 

0.14

0.13

 

 

(1.01)

(1.01)

 

(1.09)

(1.09)

 

Trina Solar Limited

Unaudited Condensed Consolidated Statements of Comprehensive Income

(US dollars in thousands)

 
 

For the Three Months Ended 
Dec. 31, 2013

 

For Year Ended 
Dec. 31, 2013

Line Items

Adjusted

Previous

 

 

Adjusted

Previous

Net income (loss)

15,258

9,554

 

(72,236)

(77,940)

Comprehensive income (loss)

18,114

12,410

 

(66,039)

(71,743)

Comprehensive income (loss) attributable to Trina Solar Limited

18,321

12,617

 

(65,830)

(71,534)

 

Trina Solar Limited

Unaudited Condensed Consolidated Balance Sheets Dec. 31, 2013

(US dollars in thousands)

 

Line Items

Adjusted

Previous

Accounts receivable, net

435,092

429,387

Total Currents assets

1,521,701

1,515,996

TOTAL ASSETS

2,567,229

2,561,525

Retained earnings

143,369

137,665

Total Trina Solar Limited shareholder's equity

822,196

816,492

Total equity

822,479

816,775

TOTAL LIABILITIES AND EQUITY

2,567,229

2,561,525

About Trina Solar Limited

Trina Solar Limited (NYSE:TSL) is a global leader in photovoltaic modules, solutions and services. Founded in 1997 as a PV system integrator, Trina Solar today drives smart energy together with installers, distributors, utilities and developers worldwide. The company's industry-shaping position is based on innovation excellence, superior product quality, vertically integrated capabilities and environmental stewardship. For more information, please visit www.trinasolar.com.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to raise additional capital to finance its activities; the effectiveness, profitability and marketability of its products; the future trading of the securities of the Company; the Company's ability to operate as a public company; the period of time for which the Company's current liquidity will enable the Company to fund its operations; general economic and business conditions; demand in various markets for solar products; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results.

For further information, please contact: 

Trina Solar Limited
Teresa Tan, CFO
Phone: + (86) 519-8517-6823 (Changzhou)

Brunswick Group
Ilse Schache

Phone: + (86) 21-6039-6388 (Shanghai)

Email: trina@brunswickgroup.com

   

Yvonne Young
Head of Investor Relations
Phone: + (86) 519-8517-6878 (Changzhou)
Email: ir@trinasolar.com

 

 

Trina Solar Limited

Unaudited Condensed Consolidated Statements of Operations

(US dollars in thousands, except ADS and share data)

 
   

For the Three Months Ended

 

For Year Ended

                     
   

Dec. 31, 
2013

 

Sep. 30, 
2013

 

Dec. 31, 

2012 

 

Dec. 31, 
2013

 

Dec. 31, 
2012 

                     

Net revenues

 

$ 525,638

 

$ 548,386

 

$ 302,746

 

$1,774,971

 

$1,296,655

Cost of revenues

 

446,517

 

464,955

 

297,112

 

1,556,777

 

1,239,412

Gross profit

 

79,121

 

83,431

 

5,634

 

218,194

 

57,243

Operating expenses

                   

Selling expenses

 

33,566

 

37,511

 

30,350

 

132,823

 

118,885

General and administrative expenses

 

19,741

 

35,527

 

40,320

 

103,523

 

176,719

Research and development expenses

 

6,007

 

4,360

 

5,392

 

19,926

 

26,511

Total operating expenses

 

59,314

 

77,398

 

76,062

 

256,273

 

322,115

Operating income (loss)

 

19,807

 

6,033

 

(70,428)

 

(38,079)

 

(264,872)

Foreign exchange gain (loss)

 

1,064

 

8,050

 

2,582

 

(13,576)

 

908

Interest expenses

 

(8,975)

 

(13,355)

 

(12,682)

 

(48,445)

 

(51,887)

Interest income

 

770

 

1,335

 

1,244

 

3,958

 

8,552

Gain (loss) on change in fair value of derivative

 

729

 

(79)

 

2,153

 

2,180

 

8,542

Other income, net

 

729

 

2,995

 

1,209

 

8,696

 

6,797

Income (loss) before income taxes

 

14,124

 

4,979

 

(75,922)

 

(85,266)

 

(291,960)

Income tax benefit (expense)

 

1,134

 

4,918

 

(11,256)

 

13,030

 

25,405

Net income (loss) 

 

15,258

 

9,897

 

(87,178)

 

(72,236)

 

(266,555)

Loss attributable to the noncontrolling interests

 

206

 

4

 

-

 

210

 

-

Net income (loss) attributable to Trina Solar Limited

 

$ 15,464

 

$ 9,901

 

$ (87,178)

 

$ (72,026)

 

$ (266,555)

                     

Earnings (loss) per ADS* 

                   

Basic

 

$ 0.22

 

$ 0.14

 

$ (1.23)

 

$ (1.01)

 

$ (3.77)

Diluted

 

$ 0.21

 

$ 0.14

 

$ (1.23)

 

$ (1.01)

 

$ (3.77)

Weighted average ADS outstanding*

                   

Basic

 

71,064,192

 

71,017,284

 

70,772,050

 

71,071,055

 

70,696,594

Diluted

 

72,526,455

 

71,757,097

 

70,772,050

 

71,071,055

 

70,696,594

                     

* "ADS" refers to any of our American depository shares, each representing 50 ordinary shares.

   
                     

Trina Solar Limited

                                                  Unaudited Condensed Consolidated Statements of Comprehensive Income

(US dollars in thousands)

                     
   

For the Three Months Ended

 

For Year Ended

         
   

Dec. 31, 

2013

 

Sep. 30, 

2013

 

Dec. 31, 

2012 

 

Dec. 31, 

2013

 

Dec. 31, 

2012 

                     

Net income (loss) 

 

$ 15,258

 

$ 9,897

 

$ (87,178)

 

(72,236)

 

(266,555)

Other comprehensive income (loss):

                   

       Foreign currency translation adjustments

 

2,856

 

(1,021)

 

(877)

 

6,197

 

(2,985)

Comprehensive income (loss) 

 

18,114

 

8,876

 

(88,055)

 

(66,039)

 

(269,540)

       Comprehensive loss attributable to non-controlling interests

 

207

 

4

 

-

 

209

 

-

Comprehensive income (loss) attributable to Trina Solar Limited

 

$ 18,321

 

$ 8,880

 

$ (88,055)

 

$ (65,830)

 

$ (269,540)

 

 

Trina Solar Limited

 

Unaudited Condensed Consolidated Balance Sheets

 

(US dollars in thousands)

 
       

Dec. 31,

 

Sep. 30,

 

Dec. 31,

       

2013

 

2013

 

2012

                 

ASSETS

               

Current assets:

               

Cash and cash equivalents

     

$        486,686

 

$     448,602

 

$        807,276

Restricted cash

     

74,720

 

109,180

 

110,920

Inventories

     

244,532

 

278,124

 

318,504

Project assets, current portion

     

73,305

 

58,948

 

7,960

Accounts receivable, net

     

435,092

 

603,009

 

390,157

Current portion of advances to suppliers, net

 

68,253

 

65,518

 

57,846

Prepaid expenses and other current assets, net

 

139,113

 

98,455

 

72,824

Total current assets

     

1,521,701

 

1,661,836

 

1,765,487

Property, plant and equipment, net

     

889,752

 

838,841

 

893,340

Project assets, net of current portion

     

6,097

 

10,271

 

23,398

Land use rights, net

     

43,287

 

43,451

 

41,961

Advances to suppliers, net of current portion

 

41,908

 

69,405

 

86,993

Investment in equity affiliates

     

11,770

 

12,899

 

10,961

Deferred income tax assets, net

     

50,901

 

62,411

 

41,048

Other noncurrent assets

     

1,813

 

1,364

 

1,669

TOTAL ASSETS

     

$     2,567,229

 

$  2,700,478

 

$     2,864,857

                 

LIABILITIES AND EQUITY

               

Current liabilities:

               

     Short-term borrowings, including current portion of
     long-term borrowings

 

$        935,590

 

$     965,569

 

$        875,821

  Accounts payable

     

476,533

 

573,744

 

428,626

  Convertible senior notes

     

-

 

-

 

83,582

  Accrued expenses and other current liabilities

 

128,420

 

122,316

 

91,126

Total current liabilities

     

1,540,543

 

1,661,629

 

1,479,155

Long-term bank borrowings, excluding current portion

100,502

 

136,136

 

415,150

Accrued warranty costs

     

81,743

 

76,924

 

65,780

Other noncurrent liabilities

     

21,962

 

23,765

 

22,987

Total liabilities

     

1,744,750

 

1,898,454

 

1,983,072

                 

Ordinary shares

     

36

 

40

 

40

Additional paid-in capital

     

663,388

 

661,304

 

656,944

Retained earnings

     

143,369

 

127,905

 

215,395

Accumulated other comprehensive income

   

15,403

 

12,546

 

9,206

Total Trina Solar Limited shareholders' equity

 

822,196

 

801,795

 

881,585

Non-controlling interests

     

283

 

229

 

200

Total equity

     

822,479

 

802,024

 

881,785

TOTAL LIABILITIES AND EQUITY

     

$     2,567,229

 

$  2,700,478

 

$     2,864,857

 

SOURCE Trina Solar Limited