Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Nextracker Reports Q3 FY24 Financial Results By: Nextracker via Business Wire January 31, 2024 at 16:05 PM EST Achieves Record Revenue and Profits; Raises FY24 Guidance Nextracker (Nasdaq: NXT), one of the world’s leading providers of intelligent solar tracker and software solutions, today announced financial results for the third quarter ended December 31, 2023. Q3 FY2024 Financial Highlights: Revenue $710 million, up 38% YoY GAAP net income $128 million, diluted EPS $0.87 Adjusted EBITDA $168 million, up 168% YoY Adjusted net income $142 million, adjusted diluted EPS $0.96 Q3 FY2024 Business Highlights: Strong execution, significant revenue growth of 38% year-over-year, and supply chain optimization Record backlog; continued demand strength globally, achieved 10-gigawatt milestone in India, Middle East, and Africa regions for projects in operation or under fulfillment High-quality balance sheet with total liquidity of approximately $800 million; strong operating cash flow of $317 million and adjusted free cash flow of $314 million year-to-date “Nextracker achieved a record third quarter, outperforming across revenue, profit and backlog, which reflects strong execution and spotlights our capability to meet customer requirements. Underpinned by product differentiation that is gaining momentum in the marketplace, we are raising our annual guidance once again,” said Dan Shugar, Founder and CEO of Nextracker. “As the world transitions to renewable energy and with solar leading new power generation, we are well positioned as the global leader in trackers, and we’re just getting started.” Raised FY2024 Annual Guidance Revenue: $2.425 billion to $2.475 billion (vs. previous $2.3 billion to $2.4 billion) GAAP Net Income: $374 million to $429 million (vs. previous $237 million to $266 million) which includes an estimated $50 million to $80 million of benefit from IRA 45X tax credit vendor rebates GAAP diluted EPS: $2.53 to $2.90 (vs. previous $1.60 to $1.80) Adjusted EBITDA: $475 million to $500 million (vs. previous $390 million to $440 million) which excludes stock-based compensation expense, net intangible amortization, and IRA 45X tax credit vendor rebates Adjusted diluted EPS: $2.55 to $2.75 (vs. previous $1.95 to $2.15) which excludes $0.30 for stock-based compensation expense and net intangible amortization, and excludes $0.28 to $0.45 of benefit from IRA 45X tax credit vendor rebates Q3 FY2024 Earnings Call January 31, 2024 1:30p.m. PT / 4:30p.m. ET Live webcast available on investors.nextracker.com The webcast replay, along with supporting materials, will be available on the Nextracker IR website following the conclusion of the event. About Nextracker Nextracker is a leading provider of intelligent, integrated solar tracker and software solutions used in utility-scale and ground-mounted distributed generation solar projects around the world. Our products enable solar panels power plants to follow the sun’s movement across the sky and optimize plant performance. With power plants operating in more than 30 countries worldwide, Nextracker offers solar tracker technologies that increase energy production while reducing costs for significant plant ROI. For more information, please visit www.nextracker.com. Forward Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the trends for future solar adoption and Nextracker’s outlook for fiscal 2024 and other periods. These forward-looking statements are based on various assumptions and on the current expectations of Nextracker’s management. These statements involve risks and uncertainties that could cause the actual results to differ materially from those anticipated by these forward-looking statements, including risks and uncertainties that are described under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Nextracker’s most recent Quarterly Report on form 10-Q, Annual Report on Form 10-K and other documents that Nextracker has filed or will file with the Securities and Exchange Commission. There may be additional risks that Nextracker is not aware of or that Nextracker currently believes are immaterial that could also cause actual results to differ from the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. Nextracker assumes no obligation to update these forward-looking statements. Use of Non-GAAP Financial Information An explanation and reconciliation of non-GAAP financial measures to GAAP financial measures is presented in Schedules IV and V attached to this press release, and can be found, along with other financial information including the Earnings Presentation, on the investor relations section of our website at investors.nextracker.com. Nextracker Inc. Unaudited condensed consolidated statements of operations and comprehensive income (In thousands, except share and per share data) Three-months ended Nine-months ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Revenue $ 710,426 $ 513,370 $ 1,763,326 $ 1,383,742 Cost of sales 500,701 431,111 1,290,747 1,187,081 Gross profit 209,725 82,259 472,579 196,661 Selling, general and administrative expenses 48,356 18,613 126,865 55,475 Research and development 12,897 4,984 29,270 13,283 Operating income 148,472 58,662 316,444 127,903 Interest and other income, net (18,307 ) (2,366 ) (8,489 ) (1,118 ) Income before income taxes 166,779 61,028 324,933 129,021 Provision for income taxes 38,818 18,442 51,918 35,218 Net income and comprehensive income 127,961 42,586 273,015 93,803 Less: Net income attributable to Nextracker LLC prior to the reorganization transactions — 42,586 — 93,803 Less: Net income attributable to redeemable non-controlling interests 86,565 — 171,937 — Net income attributable to Nextracker Inc. $ 41,396 $ — $ 101,078 $ — Earnings per share attributable to the stockholders of Nextracker Inc. (1) Basic $0.67 N/A $1.78 N/A Diluted $0.87 N/A $1.86 N/A Weighted-average shares used in computing per share amounts: Basic 62,108,835 N/A 56,789,399 N/A Diluted 147,344,370 N/A 147,160,053 N/A (1) Basic and diluted earnings per share is applicable only for the period following the initial public offering (“IPO”) and the related Transactions. Nextracker Inc. Unaudited condensed consolidated balance sheets (In thousands) As of December 31, 2023 As of March 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 367,818 $ 130,008 Accounts receivable, net of allowance of $1,884 and $1,768, respectively 365,271 271,159 Contract assets 351,545 297,960 Inventories 202,662 138,057 Other current assets 131,664 35,081 Total current assets 1,418,960 872,265 Property and equipment, net 8,369 7,255 Goodwill 265,153 265,153 Other intangible assets, net 1,633 1,321 Deferred tax assets and other assets 401,010 273,686 Total assets $ 2,095,125 $ 1,419,680 LIABILITIES, REDEEMABLE INTERESTS AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable 374,919 211,355 Accrued expenses 70,178 59,770 Deferred revenue 180,021 176,473 Due to related parties 58,292 12,239 Other current liabilities 76,027 47,589 Total current liabilities 759,437 507,426 Long-term debt 144,762 147,147 TRA liability and other liabilities 439,396 280,246 Total liabilities 1,343,595 934,819 Redeemable non-controlling interest 3,868,543 3,560,628 Total stockholders' deficit $ (3,117,013 ) $ (3,075,767 ) Total liabilities, redeemable interests, and stockholders' deficit $ 2,095,125 $ 1,419,680 Nextracker Inc. Unaudited condensed consolidated statements of cash flows (In thousands) Nine-months ended December 31, 2023 December 31, 2022 Cash flows from operating activities: Net income $ 273,015 $ 93,803 Depreciation and amortization 3,138 3,594 Changes in working capital and other, net 41,328 (25,015 ) Net cash provided by operating activities 317,481 72,382 Cash flows from investing activities: Purchases of property and equipment (3,850 ) (2,653 ) Proceeds from the disposition of property and equipment — 24 Net cash used in investing activities (3,850 ) (2,629 ) Cash flows from financing activities: Repayments of bank borrowings and long-term debt (2,813 ) — Net proceeds from issuance of Class A shares 552,009 — Purchase of LLC common units from Yuma, Inc. (552,009 ) — Distribution to non-controlling interest holders (64,365 ) — Net transfers (to) from Parent (8,335 ) 1,258 Other financing activities (308 ) — Net cash provided by (used in) financing activities (75,821 ) 1,258 Effect of exchange rate on cash and cash equivalents — — Net increase in cash and cash equivalents 237,810 71,011 Cash and cash equivalents beginning of period 130,008 29,070 Cash and cash equivalents end of period $ 367,818 $ 100,081 Nine-months ended Adjusted free cash flow December 31, 2023 December 31, 2022 Net cash provided by operating activities $ 317,481 $ 72,382 Purchases of property and equipment (3,850 ) (2,653 ) Proceeds from the disposition of property and equipment — 24 Adjusted free cash flow $ 313,631 $ 69,753 Nextracker Inc. Reconciliation of GAAP to Non-GAAP Financial measures (In thousands, except percentages, shares and per share data) Three-months ended Nine-months ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 GAAP gross profit $ 209,725 $ 82,259 $ 472,579 $ 196,661 Stock-based compensation expense 2,497 350 7,668 1,105 Intangible amortization 63 63 188 188 Non-GAAP gross profit $ 212,285 $ 82,672 $ 480,435 $ 197,954 GAAP operating income $ 148,472 $ 58,662 $ 316,444 $ 127,903 Stock-based compensation expense 13,037 940 39,895 2,790 Intangible amortization 63 63 188 1,145 Legal costs and other — — — 1,441 Non-GAAP operating income $ 161,572 $ 59,665 $ 356,527 $ 133,279 GAAP net income $ 127,961 $ 42,586 $ 273,015 $ 93,803 Stock-based compensation expense 13,037 940 39,895 2,790 Intangible amortization 63 63 188 1,145 Adjustment for taxes 841 (193 ) (4,040 ) (1,983 ) Legal costs and other — — — 1,441 Non-GAAP net income $ 141,902 $ 43,396 $ 309,058 $ 97,196 GAAP Net income $ 127,961 $ 42,586 $ 273,015 $ 93,803 Interest, net (198 ) (215 ) 1,136 (380 ) Provision for income taxes 38,818 18,442 51,918 35,218 Depreciation expense 1,055 887 2,950 2,450 Intangible amortization 63 63 188 1,145 Stock-based compensation expense 13,037 940 39,895 2,790 Legal costs and other — — — 1,441 Other tax related income, net (12,945 ) — (7,259 ) — Adjusted EBITDA $ 167,791 $ 62,703 $ 361,843 $ 136,467 Net income (% of revenue) 18.0 % 8.3 % 15.5 % 6.8 % Non-GAAP gross margin 29.9 % 16.1 % 27.2 % 14.3 % Adjusted EBITDA (% of revenue) 23.6 % 12.2 % 20.5 % 9.9 % Diluted earnings per share GAAP $ 0.87 N/A $ 1.86 N/A Earnings per share attributable to Non-GAAP adjustments $ 0.09 N/A $ 0.24 N/A Non-GAAP $ 0.96 N/A $ 2.10 N/A Diluted shares used in computing per share amounts 147,344,370 N/A 147,160,053 N/A See the accompanying notes on Schedule V attached to this press release Nextracker Inc. Notes (1) To supplement Nextracker’s unaudited selected financial data presented consistent with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude certain charges and gains, including Adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”), non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, non-GAAP diluted earnings per share, and adjusted free cash flow. These supplemental measures exclude certain legal and other charges, stock-based compensation expense and intangible amortization, other discrete events as applicable and the related tax effects. These non-GAAP measures are not in accordance with or an alternative for GAAP and may be different from non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with Nextracker’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Nextracker’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of the Company’s performance. In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of the Company’s operating performance on a period-to-period basis because such items are not, in our view, related to the Company’s ongoing operational performance. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with forecasts and strategic plans, for calculating return on investment, and for benchmarking performance externally against competitors. In addition, management’s incentive compensation is determined using certain non-GAAP measures. Since we find these measures to be useful, we believe that investors benefit from seeing results “through the eyes” of management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering: the ability to make more meaningful period-to-period comparisons of the Company’s ongoing operating results; the ability to better identify trends in the Company’s underlying business and perform related trend analysis; a better understanding of how management plans and measures the Company’s underlying business; and an easier way to compare the Company’s operating results against analyst financial models and operating results of competitors that supplement their GAAP results with non-GAAP financial measures. The following are explanations of each of the adjustments that we incorporate into non-GAAP measures, as well as the reasons for excluding each of these individual items in the reconciliations of these non-GAAP financial measures: Stock-based compensation expense consists of non-cash charges for the estimated fair value of unvested restricted share unit and stock option awards granted to employees and assumed in business acquisitions. The Company believes that the exclusion of these charges provides for more accurate comparisons of its operating results to peer companies due to the varying available valuation methodologies, subjective assumptions, and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact stock-based compensation expense has on its operating results. During fiscal year 2023, the Company granted equity compensation awards to employees under the First Amended and Restated 2022 Nextracker LLC Equity Incentive Plan (the “2022 Nextracker Plan”), Vesting of awards under the Plan was contingent on a Nextracker Initial Public Offering (IPO) which occurred on February 9, 2023. In addition to the 2022 Nextracker Plan, Flex maintains several stock-based incentive plans for the benefit of certain of its officers, directors, and employees, including the employees of Nextracker. Stock-based compensation expense for the nine-month periods also include expense recognized under the Flex plan. Intangible amortization consists primarily of non-cash charges that can be impacted by, among other things, the timing and magnitude of acquisitions. The Company considers its operating results without these charges when evaluating its ongoing performance and forecasting its earnings trends, and therefore excludes such charges when presenting non-GAAP financial measures. The Company believes that the assessment of its operations excluding these costs is relevant to its assessment of internal operations and comparisons to the performance of its competitors. Adjustment for taxes relates to the tax effects of the various adjustments that we incorporate into non-GAAP measures to provide a more meaningful measure on non-GAAP net income and certain adjustments related to non-recurring settlements of tax contingencies or other non-recurring tax charges, when applicable. View source version on businesswire.com: https://www.businesswire.com/news/home/20240131023522/en/Contacts Investors & Analysts Mary Lai VP, Investor Relations Investor@nextracker.com Media & Press Kristan Kirsh SVP, Global Marketing Media@nextracker.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Nextracker Reports Q3 FY24 Financial Results By: Nextracker via Business Wire January 31, 2024 at 16:05 PM EST Achieves Record Revenue and Profits; Raises FY24 Guidance Nextracker (Nasdaq: NXT), one of the world’s leading providers of intelligent solar tracker and software solutions, today announced financial results for the third quarter ended December 31, 2023. Q3 FY2024 Financial Highlights: Revenue $710 million, up 38% YoY GAAP net income $128 million, diluted EPS $0.87 Adjusted EBITDA $168 million, up 168% YoY Adjusted net income $142 million, adjusted diluted EPS $0.96 Q3 FY2024 Business Highlights: Strong execution, significant revenue growth of 38% year-over-year, and supply chain optimization Record backlog; continued demand strength globally, achieved 10-gigawatt milestone in India, Middle East, and Africa regions for projects in operation or under fulfillment High-quality balance sheet with total liquidity of approximately $800 million; strong operating cash flow of $317 million and adjusted free cash flow of $314 million year-to-date “Nextracker achieved a record third quarter, outperforming across revenue, profit and backlog, which reflects strong execution and spotlights our capability to meet customer requirements. Underpinned by product differentiation that is gaining momentum in the marketplace, we are raising our annual guidance once again,” said Dan Shugar, Founder and CEO of Nextracker. “As the world transitions to renewable energy and with solar leading new power generation, we are well positioned as the global leader in trackers, and we’re just getting started.” Raised FY2024 Annual Guidance Revenue: $2.425 billion to $2.475 billion (vs. previous $2.3 billion to $2.4 billion) GAAP Net Income: $374 million to $429 million (vs. previous $237 million to $266 million) which includes an estimated $50 million to $80 million of benefit from IRA 45X tax credit vendor rebates GAAP diluted EPS: $2.53 to $2.90 (vs. previous $1.60 to $1.80) Adjusted EBITDA: $475 million to $500 million (vs. previous $390 million to $440 million) which excludes stock-based compensation expense, net intangible amortization, and IRA 45X tax credit vendor rebates Adjusted diluted EPS: $2.55 to $2.75 (vs. previous $1.95 to $2.15) which excludes $0.30 for stock-based compensation expense and net intangible amortization, and excludes $0.28 to $0.45 of benefit from IRA 45X tax credit vendor rebates Q3 FY2024 Earnings Call January 31, 2024 1:30p.m. PT / 4:30p.m. ET Live webcast available on investors.nextracker.com The webcast replay, along with supporting materials, will be available on the Nextracker IR website following the conclusion of the event. About Nextracker Nextracker is a leading provider of intelligent, integrated solar tracker and software solutions used in utility-scale and ground-mounted distributed generation solar projects around the world. Our products enable solar panels power plants to follow the sun’s movement across the sky and optimize plant performance. With power plants operating in more than 30 countries worldwide, Nextracker offers solar tracker technologies that increase energy production while reducing costs for significant plant ROI. For more information, please visit www.nextracker.com. Forward Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the trends for future solar adoption and Nextracker’s outlook for fiscal 2024 and other periods. These forward-looking statements are based on various assumptions and on the current expectations of Nextracker’s management. These statements involve risks and uncertainties that could cause the actual results to differ materially from those anticipated by these forward-looking statements, including risks and uncertainties that are described under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Nextracker’s most recent Quarterly Report on form 10-Q, Annual Report on Form 10-K and other documents that Nextracker has filed or will file with the Securities and Exchange Commission. There may be additional risks that Nextracker is not aware of or that Nextracker currently believes are immaterial that could also cause actual results to differ from the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. Nextracker assumes no obligation to update these forward-looking statements. Use of Non-GAAP Financial Information An explanation and reconciliation of non-GAAP financial measures to GAAP financial measures is presented in Schedules IV and V attached to this press release, and can be found, along with other financial information including the Earnings Presentation, on the investor relations section of our website at investors.nextracker.com. Nextracker Inc. Unaudited condensed consolidated statements of operations and comprehensive income (In thousands, except share and per share data) Three-months ended Nine-months ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Revenue $ 710,426 $ 513,370 $ 1,763,326 $ 1,383,742 Cost of sales 500,701 431,111 1,290,747 1,187,081 Gross profit 209,725 82,259 472,579 196,661 Selling, general and administrative expenses 48,356 18,613 126,865 55,475 Research and development 12,897 4,984 29,270 13,283 Operating income 148,472 58,662 316,444 127,903 Interest and other income, net (18,307 ) (2,366 ) (8,489 ) (1,118 ) Income before income taxes 166,779 61,028 324,933 129,021 Provision for income taxes 38,818 18,442 51,918 35,218 Net income and comprehensive income 127,961 42,586 273,015 93,803 Less: Net income attributable to Nextracker LLC prior to the reorganization transactions — 42,586 — 93,803 Less: Net income attributable to redeemable non-controlling interests 86,565 — 171,937 — Net income attributable to Nextracker Inc. $ 41,396 $ — $ 101,078 $ — Earnings per share attributable to the stockholders of Nextracker Inc. (1) Basic $0.67 N/A $1.78 N/A Diluted $0.87 N/A $1.86 N/A Weighted-average shares used in computing per share amounts: Basic 62,108,835 N/A 56,789,399 N/A Diluted 147,344,370 N/A 147,160,053 N/A (1) Basic and diluted earnings per share is applicable only for the period following the initial public offering (“IPO”) and the related Transactions. Nextracker Inc. Unaudited condensed consolidated balance sheets (In thousands) As of December 31, 2023 As of March 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 367,818 $ 130,008 Accounts receivable, net of allowance of $1,884 and $1,768, respectively 365,271 271,159 Contract assets 351,545 297,960 Inventories 202,662 138,057 Other current assets 131,664 35,081 Total current assets 1,418,960 872,265 Property and equipment, net 8,369 7,255 Goodwill 265,153 265,153 Other intangible assets, net 1,633 1,321 Deferred tax assets and other assets 401,010 273,686 Total assets $ 2,095,125 $ 1,419,680 LIABILITIES, REDEEMABLE INTERESTS AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable 374,919 211,355 Accrued expenses 70,178 59,770 Deferred revenue 180,021 176,473 Due to related parties 58,292 12,239 Other current liabilities 76,027 47,589 Total current liabilities 759,437 507,426 Long-term debt 144,762 147,147 TRA liability and other liabilities 439,396 280,246 Total liabilities 1,343,595 934,819 Redeemable non-controlling interest 3,868,543 3,560,628 Total stockholders' deficit $ (3,117,013 ) $ (3,075,767 ) Total liabilities, redeemable interests, and stockholders' deficit $ 2,095,125 $ 1,419,680 Nextracker Inc. Unaudited condensed consolidated statements of cash flows (In thousands) Nine-months ended December 31, 2023 December 31, 2022 Cash flows from operating activities: Net income $ 273,015 $ 93,803 Depreciation and amortization 3,138 3,594 Changes in working capital and other, net 41,328 (25,015 ) Net cash provided by operating activities 317,481 72,382 Cash flows from investing activities: Purchases of property and equipment (3,850 ) (2,653 ) Proceeds from the disposition of property and equipment — 24 Net cash used in investing activities (3,850 ) (2,629 ) Cash flows from financing activities: Repayments of bank borrowings and long-term debt (2,813 ) — Net proceeds from issuance of Class A shares 552,009 — Purchase of LLC common units from Yuma, Inc. (552,009 ) — Distribution to non-controlling interest holders (64,365 ) — Net transfers (to) from Parent (8,335 ) 1,258 Other financing activities (308 ) — Net cash provided by (used in) financing activities (75,821 ) 1,258 Effect of exchange rate on cash and cash equivalents — — Net increase in cash and cash equivalents 237,810 71,011 Cash and cash equivalents beginning of period 130,008 29,070 Cash and cash equivalents end of period $ 367,818 $ 100,081 Nine-months ended Adjusted free cash flow December 31, 2023 December 31, 2022 Net cash provided by operating activities $ 317,481 $ 72,382 Purchases of property and equipment (3,850 ) (2,653 ) Proceeds from the disposition of property and equipment — 24 Adjusted free cash flow $ 313,631 $ 69,753 Nextracker Inc. Reconciliation of GAAP to Non-GAAP Financial measures (In thousands, except percentages, shares and per share data) Three-months ended Nine-months ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 GAAP gross profit $ 209,725 $ 82,259 $ 472,579 $ 196,661 Stock-based compensation expense 2,497 350 7,668 1,105 Intangible amortization 63 63 188 188 Non-GAAP gross profit $ 212,285 $ 82,672 $ 480,435 $ 197,954 GAAP operating income $ 148,472 $ 58,662 $ 316,444 $ 127,903 Stock-based compensation expense 13,037 940 39,895 2,790 Intangible amortization 63 63 188 1,145 Legal costs and other — — — 1,441 Non-GAAP operating income $ 161,572 $ 59,665 $ 356,527 $ 133,279 GAAP net income $ 127,961 $ 42,586 $ 273,015 $ 93,803 Stock-based compensation expense 13,037 940 39,895 2,790 Intangible amortization 63 63 188 1,145 Adjustment for taxes 841 (193 ) (4,040 ) (1,983 ) Legal costs and other — — — 1,441 Non-GAAP net income $ 141,902 $ 43,396 $ 309,058 $ 97,196 GAAP Net income $ 127,961 $ 42,586 $ 273,015 $ 93,803 Interest, net (198 ) (215 ) 1,136 (380 ) Provision for income taxes 38,818 18,442 51,918 35,218 Depreciation expense 1,055 887 2,950 2,450 Intangible amortization 63 63 188 1,145 Stock-based compensation expense 13,037 940 39,895 2,790 Legal costs and other — — — 1,441 Other tax related income, net (12,945 ) — (7,259 ) — Adjusted EBITDA $ 167,791 $ 62,703 $ 361,843 $ 136,467 Net income (% of revenue) 18.0 % 8.3 % 15.5 % 6.8 % Non-GAAP gross margin 29.9 % 16.1 % 27.2 % 14.3 % Adjusted EBITDA (% of revenue) 23.6 % 12.2 % 20.5 % 9.9 % Diluted earnings per share GAAP $ 0.87 N/A $ 1.86 N/A Earnings per share attributable to Non-GAAP adjustments $ 0.09 N/A $ 0.24 N/A Non-GAAP $ 0.96 N/A $ 2.10 N/A Diluted shares used in computing per share amounts 147,344,370 N/A 147,160,053 N/A See the accompanying notes on Schedule V attached to this press release Nextracker Inc. Notes (1) To supplement Nextracker’s unaudited selected financial data presented consistent with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude certain charges and gains, including Adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”), non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, non-GAAP diluted earnings per share, and adjusted free cash flow. These supplemental measures exclude certain legal and other charges, stock-based compensation expense and intangible amortization, other discrete events as applicable and the related tax effects. These non-GAAP measures are not in accordance with or an alternative for GAAP and may be different from non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with Nextracker’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Nextracker’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of the Company’s performance. In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of the Company’s operating performance on a period-to-period basis because such items are not, in our view, related to the Company’s ongoing operational performance. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with forecasts and strategic plans, for calculating return on investment, and for benchmarking performance externally against competitors. In addition, management’s incentive compensation is determined using certain non-GAAP measures. Since we find these measures to be useful, we believe that investors benefit from seeing results “through the eyes” of management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering: the ability to make more meaningful period-to-period comparisons of the Company’s ongoing operating results; the ability to better identify trends in the Company’s underlying business and perform related trend analysis; a better understanding of how management plans and measures the Company’s underlying business; and an easier way to compare the Company’s operating results against analyst financial models and operating results of competitors that supplement their GAAP results with non-GAAP financial measures. The following are explanations of each of the adjustments that we incorporate into non-GAAP measures, as well as the reasons for excluding each of these individual items in the reconciliations of these non-GAAP financial measures: Stock-based compensation expense consists of non-cash charges for the estimated fair value of unvested restricted share unit and stock option awards granted to employees and assumed in business acquisitions. The Company believes that the exclusion of these charges provides for more accurate comparisons of its operating results to peer companies due to the varying available valuation methodologies, subjective assumptions, and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact stock-based compensation expense has on its operating results. During fiscal year 2023, the Company granted equity compensation awards to employees under the First Amended and Restated 2022 Nextracker LLC Equity Incentive Plan (the “2022 Nextracker Plan”), Vesting of awards under the Plan was contingent on a Nextracker Initial Public Offering (IPO) which occurred on February 9, 2023. In addition to the 2022 Nextracker Plan, Flex maintains several stock-based incentive plans for the benefit of certain of its officers, directors, and employees, including the employees of Nextracker. Stock-based compensation expense for the nine-month periods also include expense recognized under the Flex plan. Intangible amortization consists primarily of non-cash charges that can be impacted by, among other things, the timing and magnitude of acquisitions. The Company considers its operating results without these charges when evaluating its ongoing performance and forecasting its earnings trends, and therefore excludes such charges when presenting non-GAAP financial measures. The Company believes that the assessment of its operations excluding these costs is relevant to its assessment of internal operations and comparisons to the performance of its competitors. Adjustment for taxes relates to the tax effects of the various adjustments that we incorporate into non-GAAP measures to provide a more meaningful measure on non-GAAP net income and certain adjustments related to non-recurring settlements of tax contingencies or other non-recurring tax charges, when applicable. View source version on businesswire.com: https://www.businesswire.com/news/home/20240131023522/en/Contacts Investors & Analysts Mary Lai VP, Investor Relations Investor@nextracker.com Media & Press Kristan Kirsh SVP, Global Marketing Media@nextracker.com
Nextracker (Nasdaq: NXT), one of the world’s leading providers of intelligent solar tracker and software solutions, today announced financial results for the third quarter ended December 31, 2023. Q3 FY2024 Financial Highlights: Revenue $710 million, up 38% YoY GAAP net income $128 million, diluted EPS $0.87 Adjusted EBITDA $168 million, up 168% YoY Adjusted net income $142 million, adjusted diluted EPS $0.96 Q3 FY2024 Business Highlights: Strong execution, significant revenue growth of 38% year-over-year, and supply chain optimization Record backlog; continued demand strength globally, achieved 10-gigawatt milestone in India, Middle East, and Africa regions for projects in operation or under fulfillment High-quality balance sheet with total liquidity of approximately $800 million; strong operating cash flow of $317 million and adjusted free cash flow of $314 million year-to-date “Nextracker achieved a record third quarter, outperforming across revenue, profit and backlog, which reflects strong execution and spotlights our capability to meet customer requirements. Underpinned by product differentiation that is gaining momentum in the marketplace, we are raising our annual guidance once again,” said Dan Shugar, Founder and CEO of Nextracker. “As the world transitions to renewable energy and with solar leading new power generation, we are well positioned as the global leader in trackers, and we’re just getting started.” Raised FY2024 Annual Guidance Revenue: $2.425 billion to $2.475 billion (vs. previous $2.3 billion to $2.4 billion) GAAP Net Income: $374 million to $429 million (vs. previous $237 million to $266 million) which includes an estimated $50 million to $80 million of benefit from IRA 45X tax credit vendor rebates GAAP diluted EPS: $2.53 to $2.90 (vs. previous $1.60 to $1.80) Adjusted EBITDA: $475 million to $500 million (vs. previous $390 million to $440 million) which excludes stock-based compensation expense, net intangible amortization, and IRA 45X tax credit vendor rebates Adjusted diluted EPS: $2.55 to $2.75 (vs. previous $1.95 to $2.15) which excludes $0.30 for stock-based compensation expense and net intangible amortization, and excludes $0.28 to $0.45 of benefit from IRA 45X tax credit vendor rebates Q3 FY2024 Earnings Call January 31, 2024 1:30p.m. PT / 4:30p.m. ET Live webcast available on investors.nextracker.com The webcast replay, along with supporting materials, will be available on the Nextracker IR website following the conclusion of the event. About Nextracker Nextracker is a leading provider of intelligent, integrated solar tracker and software solutions used in utility-scale and ground-mounted distributed generation solar projects around the world. Our products enable solar panels power plants to follow the sun’s movement across the sky and optimize plant performance. With power plants operating in more than 30 countries worldwide, Nextracker offers solar tracker technologies that increase energy production while reducing costs for significant plant ROI. For more information, please visit www.nextracker.com. Forward Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the trends for future solar adoption and Nextracker’s outlook for fiscal 2024 and other periods. These forward-looking statements are based on various assumptions and on the current expectations of Nextracker’s management. These statements involve risks and uncertainties that could cause the actual results to differ materially from those anticipated by these forward-looking statements, including risks and uncertainties that are described under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Nextracker’s most recent Quarterly Report on form 10-Q, Annual Report on Form 10-K and other documents that Nextracker has filed or will file with the Securities and Exchange Commission. There may be additional risks that Nextracker is not aware of or that Nextracker currently believes are immaterial that could also cause actual results to differ from the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. Nextracker assumes no obligation to update these forward-looking statements. Use of Non-GAAP Financial Information An explanation and reconciliation of non-GAAP financial measures to GAAP financial measures is presented in Schedules IV and V attached to this press release, and can be found, along with other financial information including the Earnings Presentation, on the investor relations section of our website at investors.nextracker.com. Nextracker Inc. Unaudited condensed consolidated statements of operations and comprehensive income (In thousands, except share and per share data) Three-months ended Nine-months ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Revenue $ 710,426 $ 513,370 $ 1,763,326 $ 1,383,742 Cost of sales 500,701 431,111 1,290,747 1,187,081 Gross profit 209,725 82,259 472,579 196,661 Selling, general and administrative expenses 48,356 18,613 126,865 55,475 Research and development 12,897 4,984 29,270 13,283 Operating income 148,472 58,662 316,444 127,903 Interest and other income, net (18,307 ) (2,366 ) (8,489 ) (1,118 ) Income before income taxes 166,779 61,028 324,933 129,021 Provision for income taxes 38,818 18,442 51,918 35,218 Net income and comprehensive income 127,961 42,586 273,015 93,803 Less: Net income attributable to Nextracker LLC prior to the reorganization transactions — 42,586 — 93,803 Less: Net income attributable to redeemable non-controlling interests 86,565 — 171,937 — Net income attributable to Nextracker Inc. $ 41,396 $ — $ 101,078 $ — Earnings per share attributable to the stockholders of Nextracker Inc. (1) Basic $0.67 N/A $1.78 N/A Diluted $0.87 N/A $1.86 N/A Weighted-average shares used in computing per share amounts: Basic 62,108,835 N/A 56,789,399 N/A Diluted 147,344,370 N/A 147,160,053 N/A (1) Basic and diluted earnings per share is applicable only for the period following the initial public offering (“IPO”) and the related Transactions. Nextracker Inc. Unaudited condensed consolidated balance sheets (In thousands) As of December 31, 2023 As of March 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 367,818 $ 130,008 Accounts receivable, net of allowance of $1,884 and $1,768, respectively 365,271 271,159 Contract assets 351,545 297,960 Inventories 202,662 138,057 Other current assets 131,664 35,081 Total current assets 1,418,960 872,265 Property and equipment, net 8,369 7,255 Goodwill 265,153 265,153 Other intangible assets, net 1,633 1,321 Deferred tax assets and other assets 401,010 273,686 Total assets $ 2,095,125 $ 1,419,680 LIABILITIES, REDEEMABLE INTERESTS AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable 374,919 211,355 Accrued expenses 70,178 59,770 Deferred revenue 180,021 176,473 Due to related parties 58,292 12,239 Other current liabilities 76,027 47,589 Total current liabilities 759,437 507,426 Long-term debt 144,762 147,147 TRA liability and other liabilities 439,396 280,246 Total liabilities 1,343,595 934,819 Redeemable non-controlling interest 3,868,543 3,560,628 Total stockholders' deficit $ (3,117,013 ) $ (3,075,767 ) Total liabilities, redeemable interests, and stockholders' deficit $ 2,095,125 $ 1,419,680 Nextracker Inc. Unaudited condensed consolidated statements of cash flows (In thousands) Nine-months ended December 31, 2023 December 31, 2022 Cash flows from operating activities: Net income $ 273,015 $ 93,803 Depreciation and amortization 3,138 3,594 Changes in working capital and other, net 41,328 (25,015 ) Net cash provided by operating activities 317,481 72,382 Cash flows from investing activities: Purchases of property and equipment (3,850 ) (2,653 ) Proceeds from the disposition of property and equipment — 24 Net cash used in investing activities (3,850 ) (2,629 ) Cash flows from financing activities: Repayments of bank borrowings and long-term debt (2,813 ) — Net proceeds from issuance of Class A shares 552,009 — Purchase of LLC common units from Yuma, Inc. (552,009 ) — Distribution to non-controlling interest holders (64,365 ) — Net transfers (to) from Parent (8,335 ) 1,258 Other financing activities (308 ) — Net cash provided by (used in) financing activities (75,821 ) 1,258 Effect of exchange rate on cash and cash equivalents — — Net increase in cash and cash equivalents 237,810 71,011 Cash and cash equivalents beginning of period 130,008 29,070 Cash and cash equivalents end of period $ 367,818 $ 100,081 Nine-months ended Adjusted free cash flow December 31, 2023 December 31, 2022 Net cash provided by operating activities $ 317,481 $ 72,382 Purchases of property and equipment (3,850 ) (2,653 ) Proceeds from the disposition of property and equipment — 24 Adjusted free cash flow $ 313,631 $ 69,753 Nextracker Inc. Reconciliation of GAAP to Non-GAAP Financial measures (In thousands, except percentages, shares and per share data) Three-months ended Nine-months ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 GAAP gross profit $ 209,725 $ 82,259 $ 472,579 $ 196,661 Stock-based compensation expense 2,497 350 7,668 1,105 Intangible amortization 63 63 188 188 Non-GAAP gross profit $ 212,285 $ 82,672 $ 480,435 $ 197,954 GAAP operating income $ 148,472 $ 58,662 $ 316,444 $ 127,903 Stock-based compensation expense 13,037 940 39,895 2,790 Intangible amortization 63 63 188 1,145 Legal costs and other — — — 1,441 Non-GAAP operating income $ 161,572 $ 59,665 $ 356,527 $ 133,279 GAAP net income $ 127,961 $ 42,586 $ 273,015 $ 93,803 Stock-based compensation expense 13,037 940 39,895 2,790 Intangible amortization 63 63 188 1,145 Adjustment for taxes 841 (193 ) (4,040 ) (1,983 ) Legal costs and other — — — 1,441 Non-GAAP net income $ 141,902 $ 43,396 $ 309,058 $ 97,196 GAAP Net income $ 127,961 $ 42,586 $ 273,015 $ 93,803 Interest, net (198 ) (215 ) 1,136 (380 ) Provision for income taxes 38,818 18,442 51,918 35,218 Depreciation expense 1,055 887 2,950 2,450 Intangible amortization 63 63 188 1,145 Stock-based compensation expense 13,037 940 39,895 2,790 Legal costs and other — — — 1,441 Other tax related income, net (12,945 ) — (7,259 ) — Adjusted EBITDA $ 167,791 $ 62,703 $ 361,843 $ 136,467 Net income (% of revenue) 18.0 % 8.3 % 15.5 % 6.8 % Non-GAAP gross margin 29.9 % 16.1 % 27.2 % 14.3 % Adjusted EBITDA (% of revenue) 23.6 % 12.2 % 20.5 % 9.9 % Diluted earnings per share GAAP $ 0.87 N/A $ 1.86 N/A Earnings per share attributable to Non-GAAP adjustments $ 0.09 N/A $ 0.24 N/A Non-GAAP $ 0.96 N/A $ 2.10 N/A Diluted shares used in computing per share amounts 147,344,370 N/A 147,160,053 N/A See the accompanying notes on Schedule V attached to this press release Nextracker Inc. Notes (1) To supplement Nextracker’s unaudited selected financial data presented consistent with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude certain charges and gains, including Adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”), non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, non-GAAP diluted earnings per share, and adjusted free cash flow. These supplemental measures exclude certain legal and other charges, stock-based compensation expense and intangible amortization, other discrete events as applicable and the related tax effects. These non-GAAP measures are not in accordance with or an alternative for GAAP and may be different from non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with Nextracker’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Nextracker’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of the Company’s performance. In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of the Company’s operating performance on a period-to-period basis because such items are not, in our view, related to the Company’s ongoing operational performance. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with forecasts and strategic plans, for calculating return on investment, and for benchmarking performance externally against competitors. In addition, management’s incentive compensation is determined using certain non-GAAP measures. Since we find these measures to be useful, we believe that investors benefit from seeing results “through the eyes” of management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering: the ability to make more meaningful period-to-period comparisons of the Company’s ongoing operating results; the ability to better identify trends in the Company’s underlying business and perform related trend analysis; a better understanding of how management plans and measures the Company’s underlying business; and an easier way to compare the Company’s operating results against analyst financial models and operating results of competitors that supplement their GAAP results with non-GAAP financial measures. The following are explanations of each of the adjustments that we incorporate into non-GAAP measures, as well as the reasons for excluding each of these individual items in the reconciliations of these non-GAAP financial measures: Stock-based compensation expense consists of non-cash charges for the estimated fair value of unvested restricted share unit and stock option awards granted to employees and assumed in business acquisitions. The Company believes that the exclusion of these charges provides for more accurate comparisons of its operating results to peer companies due to the varying available valuation methodologies, subjective assumptions, and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact stock-based compensation expense has on its operating results. During fiscal year 2023, the Company granted equity compensation awards to employees under the First Amended and Restated 2022 Nextracker LLC Equity Incentive Plan (the “2022 Nextracker Plan”), Vesting of awards under the Plan was contingent on a Nextracker Initial Public Offering (IPO) which occurred on February 9, 2023. In addition to the 2022 Nextracker Plan, Flex maintains several stock-based incentive plans for the benefit of certain of its officers, directors, and employees, including the employees of Nextracker. Stock-based compensation expense for the nine-month periods also include expense recognized under the Flex plan. Intangible amortization consists primarily of non-cash charges that can be impacted by, among other things, the timing and magnitude of acquisitions. The Company considers its operating results without these charges when evaluating its ongoing performance and forecasting its earnings trends, and therefore excludes such charges when presenting non-GAAP financial measures. The Company believes that the assessment of its operations excluding these costs is relevant to its assessment of internal operations and comparisons to the performance of its competitors. Adjustment for taxes relates to the tax effects of the various adjustments that we incorporate into non-GAAP measures to provide a more meaningful measure on non-GAAP net income and certain adjustments related to non-recurring settlements of tax contingencies or other non-recurring tax charges, when applicable. View source version on businesswire.com: https://www.businesswire.com/news/home/20240131023522/en/
Investors & Analysts Mary Lai VP, Investor Relations Investor@nextracker.com Media & Press Kristan Kirsh SVP, Global Marketing Media@nextracker.com
