ReneSola reports lower cash balance, record product shipments in Q3

By Lisa Kerner

Charlotte, N.C., Nov. 30 - ReneSola Ltd. ended its third quarter with cash, cash equivalents and restricted cash of $335.2 million, down from $394.2 million as of the end of the second quarter of 2012.

The company held an earnings call on Friday to discuss its unaudited financial results for the third quarter ended Sept. 30.

At Sept. 30, ReneSola had short-term borrowings of $715.8 million, long-term borrowings of $134.5 million, convertible notes totaling $111.6 million and shareholder equity of $449.1 million.

These figures compare to the period ended June 30 as $691.1 million, $130.2 million, $111.6 million, and $521.0 million, respectively.

At the end of the third quarter, ReneSola's interest coverage ratio was a negative 6.2, and its net debt to equity was 140%, according to the company's earnings presentation.

Financial highlights

ReneSola's net revenues met guidance at $218.2 million but were down 6.4% from the second quarter, according to a company news release.

The company reported an operating loss of $82.8 million for the quarter with an operating margin of negative 38%, compared to an operating loss of $34.6 million with an operating margin of negative 14.9% in the second quarter of 2012.

Net loss for the third quarter of 2012 was $78.6 million, representing basic and diluted loss per share of $0.46 and basic and diluted loss per American Depositary Share of $0.91.

Despite record shipments in the third quarter, ReneSola's margins were impacted by declining selling prices and a "substantial" supply-demand imbalance, according to chief executive officer Xianshou Li.

Based in Jiashan, China, ReneSola is a manufacturer of solar products.

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