Maxeon Solar Technologies(MAXN) - 2024 Q4 - Annual Report

Maxeon Solar Technologies Fourth Quarter and Fiscal Year 2024 Results Management Commentary & Business Outlook The company attributes poor performance to a U.S. import ban and is restructuring to focus solely on the U.S. market - The U.S. Customs & Border Protection (CBP) has blocked imports of Maxeon 3, 6, and Performance 6 panels since July 2024, citing UFLPA concerns, a decision the company is legally contesting[2] - Maxeon is restructuring to focus exclusively on the U.S. market, which includes streamlining operations, reducing costs, and identifying additional domestic component vendors[2] - The company has divested assets in the Philippines and other non-U.S. businesses to improve liquidity and has restructured debt interest payments to reduce its cash burden[2] - Due to ongoing restructuring and a volatile policy environment, the company has suspended financial guidance, will not hold a conference call, and will switch to semi-annual reporting[2] Financial Highlights Fiscal year 2024 saw a sharp revenue decline to $509.0 million, a significant net loss of $614.3 million, and negative Adjusted EBITDA Fiscal Year 2024 vs. 2023 Financial Performance | Metric | Fiscal Year 2024 | Fiscal Year 2023 | Change | | :--- | :--- | :--- | :--- | | Shipments (MW) | 1,424 | 2,963 | -51.9% | | Revenue | $509.0M | $1,123.1M | -54.7% | | GAAP Gross (Loss) Profit | ($249.4M) | $78.1M | Negative Turnaround | | GAAP Net Loss | ($614.3M) | ($275.8M) | +122.7% Increase in Loss | | Adjusted EBITDA | ($376.1M) | $3.7M | Negative Turnaround | Q4 2024 vs. Q4 2023 Financial Performance | Metric | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Shipments (MW) | 211 | 653 | -67.7% | | Revenue | $48.8M | $228.8M | -78.7% | | GAAP Gross Loss | ($47.7M) | ($34.5M) | +38.3% Increase in Loss | | GAAP Net Loss | ($106.0M) | ($186.3M) | -43.1% Decrease in Loss | | Adjusted EBITDA | ($74.9M) | ($37.6M) | +99.2% Increase in Loss | Consolidated Financial Statements The statements show a deteriorating financial position, with total assets falling to $376.3 million, equity turning negative, and a significant net loss Condensed Consolidated Statements of Operations FY 2024 revenue halved to $509.0 million, leading to a gross loss of $249.4 million and a widened net loss of $614.3 million Fiscal Year Statement of Operations (in thousands) | Line Item | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Revenue | $509,048 | $1,123,110 | | Gross (Loss) Profit | $(249,413) | $78,115 | | Operating Loss | $(576,640) | $(219,205) | | Net Loss Attributable to Stockholders | $(614,300) | $(275,829) | Condensed Consolidated Balance Sheets Total assets fell to $376.3 million while total equity became negative at -$288.4 million by year-end 2024 Key Balance Sheet Items (in thousands) | Line Item | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $28,895 | $190,169 | | Total current assets | $266,016 | $619,019 | | Total assets | $376,272 | $1,002,009 | | Total current liabilities | $338,508 | $431,936 | | Total liabilities | $664,637 | $997,367 | | Total equity | $(288,365) | $4,642 | Condensed Consolidated Statements of Cash Flows Net cash used in operations was $270.2 million, contributing to a significant drop in year-end cash to $31.0 million Fiscal Year Cash Flow Summary (in thousands) | Cash Flow Activity | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(270,156) | $(254,295) | | Net cash (used in) provided by investing activities | $(25,243) | $13,926 | | Net cash provided by financing activities | $141,233 | $167,951 | - Total cash, cash equivalents, and restricted cash decreased from $195.5 million at the end of FY2023 to $31.0 million at the end of FY2024[24] Non-GAAP Financial Measures The company uses non-GAAP measures like Adjusted EBITDA, which was a loss of $376.1 million, to show its view of ongoing performance - The company uses non-GAAP measures to supplement GAAP results, believing they enhance comparability by removing items not representative of core operations[11][12] - Key adjustments to derive non-GAAP figures include stock-based compensation, restructuring charges and fees, remeasurement losses on financial instruments, and provisions for expected credit losses[13][14] Reconciliation of GAAP Net Loss to Adjusted EBITDA (in thousands) | Line Item | Fiscal Year 2024 | Fiscal Year 2023 | | :--- | :--- | :--- | | GAAP Net loss attributable to the stockholders | $(614,300) | $(275,829) | | Adjustments (Interest, Taxes, D&A, etc.) | +$103,997 | +$88,305 | | EBITDA | $(510,303) | $(187,524) | | Further Non-GAAP Adjustments | +$134,154 | +$191,194 | | Adjusted EBITDA | $(376,149) | $3,670 | Forward-Looking Statements & Risk Factors The company faces significant risks including its ability to continue as a going concern, the success of its U.S. strategy, and an ongoing import ban - Major risks include the ability to continue as a going concern, service outstanding debt, and successfully execute restructuring plans[6] - The denial of U.S. market entry for its products by the U.S. CBP for an unforeseeable time is a critical operational disruption and risk[6][9] - The company's strategy is now focused on the U.S. market, which involves developing new U.S. vendors and supply chains, and managing its relationship with a controlling shareholder based in the PRC amid U.S.-China trade tensions[6][7]