FREMONT, Calif., Feb. 18, 2020 (GLOBE NEWSWIRE) — Enphase Energy, Inc. (NASDAQ:ENPH), a global energy technology company and the world’s leading supplier of solar microinverters, announced today financial results for the fourth quarter of 2019, which included the summary below from its President and CEO, Badri Kothandaraman.Highlights for the fourth quarter of 2019 included:Revenue of $210.0 million, including approximately $36.4 million of safe harbor revenueCash flow from operations of $102.3 million; ending cash balance of $296.1 million, including restricted cashGAAP gross margin of 37.1%; non-GAAP gross margin of 37.3%GAAP operating expenses of $33.4 million; non-GAAP operating expenses of $26.1 millionGAAP operating income of $44.4 million; non-GAAP operating income of $52.3 millionGAAP net income of $116.7 million, including an income tax benefit of $72.2 million; non-GAAP net income of $52.0 millionGAAP diluted EPS of $0.88, including an income tax benefit of $0.54; non-GAAP diluted EPS of $0.39Our revenue and earnings for the fourth quarter of 2019 are given below, compared with those of the prior quarter and the year ago quarter:(In thousands, except per share data and percentages)Our revenue and earnings for the fiscal year 2019 are given below, compared with those of the prior year:(In thousands, except per share data and percentages)Our fourth quarter revenue was $210.0 million, including approximately $36.4 million of safe harbor revenue. We shipped approximately 677 megawatts DC, or 2,112,725 microinverters. Fourth quarter revenue increased 17% sequentially and 128% year-over year. Product innovation and customer experience remain the cornerstones of our growth strategy. We achieved volume shipments of IQ 7A™, our highest power microinverter, during the fourth quarter as our customers continued to seek module-level power electronics optimal for high-efficiency solar modules.Our non-GAAP gross margin was 37.3%, an increase of 110 basis points from 36.2% in the third quarter of 2019. Expedite fees were within the range expected in the normal course of business, as component supply remained stable. Non-GAAP operating expenses were $26.1 million, compared to $25.0 million in the prior quarter. Non-GAAP operating income was $52.3 million, compared to $40.2 million in the prior quarter.We exited the fourth quarter with $296.1 million in cash, including restricted cash, and generated $102.3 million in cash flow from operations. The restricted cash is related to the first quarter of 2020 safe harbor deliveries and is expected to become unrestricted at the end of April 2020. Inventory was $32.1 million at the end of the fourth quarter of 2019, compared to $30.2 million at the end of the third quarter of 2019, and $16.3 million at the end of the fourth quarter of 2018.For the full year 2019, revenue was $624.3 million, compared to $316.2 million in 2018. We generated $139.1 million of cash flow from operations in 2019, compared to $16.1 million in 2018. GAAP net income was $161.1 million, resulting in diluted earnings per share of $1.23. Non-GAAP net income was $124.2 million, resulting in diluted earnings per share of $0.95. We are pleased to report that 2019 was the first full year of GAAP profitability in Enphase’s history.Shipments of our Encharge™ battery storage system utilizing our Ensemble™ energy management technology remain on track for March 2020. We are pleased with the pre-orders received and are ramping installer training to support the product launch.BUSINESS HIGHLIGHTSOn November 18, 2019 Enphase Energy announced it signed a strategic supply agreement with Sunrun Inc., the nation’s leading home solar, battery storage and energy services company. As part of the agreement, Enphase will provide its seventh-generation Enphase IQ™ microinverters to Sunrun for use in its residential solar business. Sunrun’s customers will benefit from Enphase’s IQ 7™ and IQ 7+™ microinverters, which leverage Enphase’s unique software-defined architecture and semiconductor integration for excellent reliability and economies of scale.On November 20, 2019, Enphase Energy announced the availability of pre-orders for battery storage systems based on its Ensemble energy management technology. Solar installers can place pre-orders for Encharge 3™ or Encharge 10™ storage systems, which offer usable and scalable capacity of 3.4 kWh and 10.1 kWh, respectively. The storage systems feature Enphase embedded grid-forming microinverters that enable the Always-On functionality. These systems are compatible with both new and existing Enphase IQ solar systems with IQ 6™ or IQ 7 microinverters and provide a simple upgrade path for Enphase’s existing solar customers.On December 12, 2019, Enphase Energy hosted an Analyst Day and announced a new baseline financial model of 35% gross margin, 15% operating expenses and 20% operating income, all as a percentage of revenue on a non-GAAP basis. Enphase discussed several new products, including Encharge storage systems, IQ 8™ microinverters for the residential market, IQ 8D™ microinverters for the small commercial market, and Ensemble-in-a-Box for the India off-grid market. Enphase also forecasted its served available market growing from $3.3 billion in 2019 to $12.5 billion in 2022, which the company believes provides an opportunity for profitable growth.On January 21, 2020, Enphase Energy announced that Petersen-Dean, Inc., one of the largest full-service, privately held roofing and solar companies in the U.S., selected Enphase as its premier supplier of solar inverters and battery storage systems. Per this agreement, Enphase will provide Petersen-Dean with turnkey energy solutions for new residential and commercial construction. Petersen-Dean selected Enphase for its all-in-one smart energy system consisting of solar microinverters, battery storage, and energy management.On February 10, 2020, Enphase Energy announced it has joined forces with CREATON GmbH, one of the leading residential roof manufacturers in Europe, to deliver photovoltaic (PV) in-roof systems to residential solar customers throughout Germany. CREATON offers an extensive range of products for pitched roof solutions, including both clay and concrete roof tiles, and system accessories. Its newly developed PV in-roof systems with Enphase Energy include Enphase IQ 7 and IQ 7+ microinverters, along with Enphase Envoy™ communications gateways, which connect the system to the Enphase Enlighten™ monitoring platform and makes per-panel energy monitoring and insights for operations and maintenance easy.FIRST QUARTER 2020 FINANCIAL OUTLOOKFor the first quarter of 2020, Enphase Energy estimates both GAAP and non-GAAP financial results as follows:Revenue to be within a range of $200 million to $210 million, including $44.5 million of revenue for ITC safe harbor shipmentsGAAP and non-GAAP gross margin to be within a range of 36% to 39%GAAP operating expenses to be within a range of $35 million to $37 million, including a total of approximately $7 million estimated for stock-based compensation expenses and acquisition related amortizationNon-GAAP operating expenses to be within a range of $28 million to $30 million, excluding a total of approximately $7 million estimated for stock-based compensation expenses and acquisition related amortizationFollow Enphase OnlineRead the Enphase blog.Follow @Enphase on Twitter.Visit us on Facebook and LinkedIn.Watch Enphase videos on YouTube.Use of Non-GAAP Financial MeasuresThe Company has presented certain non-GAAP financial measures in this press release. To view a description of non-GAAP financial measures used and the non-GAAP reconciliation schedule for the periods presented, click here.Conference Call InformationEnphase Energy will host a conference call for analysts and investors to discuss its fourth quarter 2019 results and first quarter 2020 business outlook today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The call is open to the public by dialing (877) 644-1284; participant passcode 5285143. A live webcast of the conference call will also be accessible from the “Investor Relations” section of the Company’s website at investor.enphase.com. Following the webcast, an archived version will be available on the website for one year. In addition, an audio replay of the conference call will be available by calling (855) 859-2056; participant passcode 5285143, beginning approximately one hour after the call.Forward-Looking StatementsThis press release contains forward-looking statements, including statements related to Enphase Energy’s expected future financial performance; the capabilities, advantages, and performance of our technology and products, including the anticipated market adoption of current and future products; the compatibility and scalability of our products; the served available market; and the ease of monitoring PV systems. These forward-looking statements are based on the Company’s current expectations and inherently involve significant risks and uncertainties. Enphase Energy’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of certain risks and uncertainties including those risks described in more detail in the Company’s most recent Annual Report on Form 10-K and other documents on file with the SEC and available on the SEC’s website at www.sec.gov. Enphase Energy undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.A copy of this press release can be found on the investor relations page of Enphase Energy’s website at investor.enphase.com.About Enphase Energy, Inc.Enphase Energy, a global energy technology company, delivers smart, easy-to-use solutions that manage solar generation, storage and communication on one intelligent platform. The Company revolutionized the solar industry with its microinverter technology and produces a fully integrated solar-plus-storage solution. Enphase has shipped more than 25 million microinverters, and over one million Enphase systems have been deployed in more than 130 countries. For more information, visit www.enphase.com.Enphase Energy®, the Enphase logo, IQ, IQ 6, IQ 7, IQ 7+, IQ 7A, Encharge, Ensemble, Envoy, Enlighten, IQ 8, IQ 8D, and other trademarks or service names are the trademarks of Enphase Energy, Inc. Other names are for informational purposes and may be trademarks of their respective owners.Contact:
Adam Hinckley
Enphase Energy, Inc.
Investor Relations
ir@enphaseenergy.com
+1-707-763-4784 x7354 ENPHASE ENERGY, INC.
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(Unaudited)(2) Calculation of non-GAAP diluted net income per share for the three months ended December 31, 2019, September 30, 2019 and December 31, 2018 excludes convertible notes due 2023 interest expense, net of tax of less than $0.1 million, $0.1 million and $0.5 million, respectively, from non-GAAP net income. Calculation of non-GAAP diluted net income per share for the twelve months ended December 31, 2019 and December 31, 2018 excludes convertible notes due 2023 interest expense, net of tax of $0.9 million and $0.7 million, respectively, from non-GAAP net income.(3) Effect of dilutive in-the-money portion of convertible senior notes and warrants are included in the GAAP weighted-average diluted shares in periods where we have GAAP net income. We excluded the in-the-money portion of convertible notes due 2024 totaling 639 thousand shares, 1288 thousand shares and 451 thousand shares in the three months ended December 31, 2019, three months ended September 30, 2019 and twelve months ended December 31, 2019, respectively, for non-GAAP weighted-average diluted shares as the Company entered into convertible note hedge transactions that reduce potential dilution to the Company’s common stock upon any conversion of the Notes due 2024.
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