Trina Solar raises $223 million, ends Q2 with $775 million bank debt

By Lisa Kerner

Charlotte, N.C., Aug. 26 – Trina Solar Ltd. completed a follow-on public offering of American Depositary Shares and a concurrent offering of convertible senior notes in June, according to chairman and chief executive officer Jifan Gao.

The offering raised about $223 million in net proceeds, adding additional flexibility to accelerate growth in the downstream business and to expand module production capacity.

Gao made his comments during Trina Solar’s second-quarter earnings conference call on Tuesday.

The company “overall delivered healthy results” for the quarter, said chief financial officer Teresa Tan.

At June 30, Trina Solar had about $563 million in cash and cash equivalents and restricted cash.

Total bank borrowings were about $775 million, including roughly $670 million in short-term borrowings and including a current portion of long-term borrowings.

Trina Solar’s working capital balance at June 30 was $151 million, compared to $24 million as of March 31.

Shareholders’ equity increased in the second quarter to $913 million, from $848 million in the first quarter.

Financial highlights

Second-quarter net revenues were up 16.8% quarter over quarter at $519 million. Net revenues were up 17.9% year over year.

Gross profit decreased 12.3% from the first quarter to $80 million. The company reported gross profit of $51 million in the second quarter of 2013, according to the earnings news release.

Operating income was down 59% from the first quarter at about $16 million. Trina Solar had an operating loss during the prior-year period of $24 million.

Trina Solar’s second-quarter net income decreased 61.1% from the first quarter to $10 million. For the second quarter of 2013, Trina Solar reported a net loss of about $34 million.

The company posted earnings per fully diluted ADS of $0.14, compared to $0.37 in the first quarter of 2014, and a loss per fully diluted ADS of $0.47 in the second quarter of 2013.

Trina Solar is a Changzhou, China-based maker of solar power products.

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