Canadian Solar Inc. ("Canadian Solar" or the "Company") (NASDAQ: CSIQ) today announced financial results for the quarter ended March 31, 2020.
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First Quarter 2020 Highlights
First Quarter 2020 Results
Net revenue in the first quarter of 2020 was $826 million, compared to $920 million in the fourth quarter of 2019, and $485 million in the first quarter of 2019. The year-over-year revenue growth was due to higher module shipments and project sales, partially offset by a decline in average module selling price ("ASP").
Total module shipments in the first quarter of 2020 were 2,214 MW, compared to 2,474 MW in the fourth quarter of 2019, and 1,575 MW in the first quarter of 2019. Of the totals, 253 MW were shipped to the Company's utility-scale solar power projects in the first quarter of 2020, compared to 295 MW in the fourth quarter of 2019, and 52 MW in the first quarter of 2019.
Gross profit in the first quarter of 2020 was $223 million, compared to $230 million in the fourth quarter of 2019, and $107 million in the first quarter of 2019. Gross margin in the first quarter of 2020 was 27.0%, compared to 25.0% in the fourth quarter of 2019, and 22.2% in the first quarter of 2019. The gross margin improvement was primarily due to an increased contribution of higher margin project sales.
Income from operations in the first quarter of 2020 was $113 million, compared to $111 million in the fourth quarter of 2019, and $7 million in the first quarter of 2019. Operating margin was 13.7% in the first quarter of 2020, compared to 12.1% in the fourth quarter of 2019, and 1.4% in the first quarter of 2019.
Non-cash depreciation and amortization charges in the first quarter of 2020 were $45 million, which is unchanged from the fourth quarter of 2019, and higher than $38 million in the first quarter of 2019.
The Company uses derivative instruments to hedge its foreign exchange positions. In the first quarter of 2020, the Company recorded a foreign exchange loss of $34 million, which was largely offset by a $33 million gain on the change in fair value of derivatives used in the Company's foreign exchange hedging program. The resulting net loss in the first quarter of 2020 was $1 million, compared to a net loss of $3 million in the fourth quarter of 2019, and a net loss of $14 million in the first quarter of 2019.
The investment income loss of $14 million in the first quarter of 2020 was primarily attributable to an impairment provision charge with respect to our remaining 49% equity interest in the Roserock Project in the U.S.
Income tax benefit in the first quarter of 2020 was $29 million, compared to a tax expense of $25 million in the fourth quarter of 2019, and a tax benefit of $8 million in the first quarter of 2019. The tax benefit in the first quarter of 2020 was primarily due to a one-time net operating loss carryback provision.
Net income attributable to Canadian Solar in the first quarter of 2020 was $110.6 million, or $1.84 per diluted share, compared to net income of $67.7 million, or $1.12 per diluted share, in the fourth quarter of 2019, and a net loss of $17.2 million, or $0.29 per diluted share, in the first quarter of 2019.
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