SunPower Corp (NASDAQ:SPWR) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 04:30 pm ET

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SunPower Corp (NASDAQ:SPWR) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon. Welcome to SunPower Corporation's Second Quarter 2020 Earnings Conference Call. [Operator Instructions]. I would now like to turn the call over to Mr. Bob Okunski, Vice President of Investor Relations at SunPower Corporation. Thank you, sir. You may begin.

Executive
Bob Okunski

Thank you, Shannon. I would like to welcome everyone to our Second Quarter 2020 Earnings Conference Call. On the call today, we'll start out with a strategic overview from Tom Werner, CEO of SunPower, who will also provide an update on our SPES business, followed by Jeff Waters, CEO of SPT and Maxeon, who will discuss our international business. Manu Sial, our CFO, will then review our second quarter 2020 financial results before turning the call back over to Tom for our guidance.

As a reminder, a replay of this call will be available later today on the Investor Relations page of our website. During today's call, we will make forward-looking statements that are subject to various risks and uncertainties that are described in the safe harbor slide of today's presentation. Today's press release, our 2019 10-K and our quarterly reports on Form 10-Q. Please see those documents for additional information regarding those factors that may affect these forward-looking statements.

To enhance this call, we have also posted a set of PowerPoint slides, which we will reference during the call on the Events and Presentations page of our Investor Relations website. Please note, we have provided a number of additional data slides in the appendix of our presentation deck. In the same location, we have also posted a supplemental data sheet detailing some of our other historical metrics. Finally, I would like to highlight that SunPower will be hosting our 2020 Capital Markets Day on September 10, and we will provide details on timing as we get closer to the event. With that, I'd like to turn the call over to Tom Werner, CEO of SunPower. Tom?

Executive
Thomas Werner

Thanks, Bob, and thank you for joining us. On this call, we will provide an overview of our second quarter performance and a brief update on our strong competitive position in the second half of the year and beyond. Let's start with a recap of our second quarter performance. Please turn to Slide 3. We executed well in the second quarter despite the COVID disruption as we exceeded our guidance in all of our key financial metrics while generating $30 million in cash. Our U.S. channels business contributed to outperform -- continued to outperform with strong demand in our residential retrofit and new homes businesses.

Our C&I business also exceeded plan, posting positive EBITDA for the quarter. While SPT's Q2 performance was impacted by factory shutdowns, we exceeded our shipment guidance and saw improving demand trends. I'm very proud of our employees' diligent execution during the quarter, making sure our employees and customers stayed safe while transitioning effectively to a new way of doing business. We continued to invest in our industry-leading solutions, and we're pleased to launch a number of new products