First Solar, Inc. (NASDAQ:FSLR) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 04:30 pm ET

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First Solar, Inc. (NASDAQ:FSLR) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon, everyone, and welcome to First Solar's Second Quarter 2020 Earnings Call. This call is being webcast live on the Investors section of First Solar's website at investor.firstsolar.com. [Operator Instructions].

I would now like to turn the call over to Mitch Ennis from First Solar Investor Relations. Mr. Ennis, you may begin.

Executive
Mitchell Ennis

Thank you. Good afternoon, everyone, and thank you for joining us. Today, the company issued a press release announcing its second quarter 2020 financial results. A copy of the press release and associated presentation are available on First Solar's website at investor.firstsolar.com. With me today are Mark Widmar, Chief Executive Officer; and Alex Bradley, Chief Financial Officer. Mark will begin by providing a business technology update. Alex will then discuss our financial results for the quarter as well as our outlook for 2020. Following the remarks, we will open the call for questions.

Please note this call will include forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from management's current expectations, including, among other risks and uncertainties, the severity and duration of the effects of the COVID-19 pandemic. We encourage you to review the safe harbor statements contained in today's press release and presentation for a more complete description.

It is now my pleasure to introduce Mark Widmar, Chief Executive Officer. Mark?

Executive
Mark R. Widmar

Thank you, Mitch. Good afternoon, and thank you for joining us today. We continue to hope each of you are managing well as the pandemic continues. As we emphasized during our May earnings call, our COVID-19 response centers on balancing our top priority of safety with meeting our commitments to our customers.

This approach, together with our associates dedication and the strength of our differentiated business model enabled us to deliver solid financial results for the second quarter and year-to-date, with earnings of $0.35 per share and $1.20 per share, respectively. Alex will discuss our results in greater detail.

Starting on slide three with our module business. We remain pleased with our operational performance, with strong metrics across the board. Year-to-date, we have produced 3.5 gigawatts, including 3.3 gigawatts of Series 6 modules. Fleet-wide capacity utilization has remained over 100% for the month of May, June and July. The fleet-wide capacity utilization is led by our international factories in Vietnam and Malaysia, which are progressing towards their previously demonstrated capacity utilization peak of 120% of initial design nameplate.

Domestically, our Ohio one and two factories experienced 2.5 days of idle production in June, but still achieved respective utilization rates of over 100% and 94% during June. The unplanned downtime was caused by railway logistics constraints, which resulted in a delivery delay of certain bill of materials supply.

As a result, we accelerated previously planned factory upgrades from the third quarter to minimize any impact to our full year production plan. On a fleet-wide basis, in July, megawatts produced per day was 15.9 megawatts. Manufacturing yield was 96.4%. Average watts per module was 435 watts, and the ARC bin distribution