Latest news with #CSLR
West Australian
4 days ago
- Business
- West Australian
First Guardian collapse could spark major change in financial compensation
Thousands of Australians who are at risk of losing their nest eggs may have a chance at getting some money back after the federal government ordered a review into a key compensation scheme. First Guardian Master Fund collapsed earlier this year, leaving thousands of Australians in the lurch and unsure if they will ever see their money again. Since 2024, Australians who lose money from a failed or collapsed financial company can claim up to $150,000 through the Compensation Scheme of Last Resort (CSLR) – a scheme that offers compensation to people in relation to complaints about personal financial advice, credit intermediation, securities dealing or credit provision. However, Assistant Treasurer and Financial Services Minister Daniel Mulino has ordered a review of the scheme, as it only offers limited funding and may not be able to cover all the losses when a company crashes. Currently, the scheme puts a cap of $20m on each of the four listed areas. Mr Mulino said the CSLR was in need of a review and was considering imposing a special levy to meet a significant shortfall, with the Financial Services Council (FSC) saying the scheme's costs had blown out by 840 per cent on initial estimates. 'The CSLR pays compensation to claimants where an eligible determination issued by the Australian Financial Complaints Authority (AFCA) remains unpaid,' Mr Mulino said. In July, the CSLR operator revised the scheme's cost to $75.7m, of which $67.3m was attributable to the personal advice sector in 2025-2026. 'This exceeds the $20m limit on levies that can be applied to the advice sub-sector to fund the claim,' he said. 'This has triggered the option available to me as the responsible minister under the CSLR legislation to raise a special levy to pay for the excess costs. 'I have asked Treasury to consult on all statutory options available to deal with this matter. 'The paper seeks feedback on a broad range of options to inform my decision.' FSC chief executive Blake Briggs welcomed the scheme's review, promising to work 'constructively' with Treasury. In a statement, Mr Briggs argued the government scheme needed to be brought under control and made sustainable before imposing the special levy. 'The industry welcomes the minister's engagement on the CSLR special levy,' he said. 'In considering whether and how to determine a special levy, the minister should have regard to the risk of entrenching further moral hazard into the scheme through underwriting investment losses, the financial sustainability and viability of sub-sectors, and spreading the cost as widely as possible to minimise the burden on any one sector.' He said the minister should 'prioritise responding to the outcomes of Treasury's review of the design of the scheme', which was established to 'assess the scheme's framework, scope and sustainability on an ongoing basis'. 'If the industry is going to bear the costs of the $47m special levy, the industry needs assurance that the scheme will not continue to blow out year on year,' he added. 'Already we have seen the scheme blow out by 840 per cent from Treasury's initial estimate of $8.1m per year to $75.7m. CSLR chief executive David Berry told NewsWire the scheme could 'only compensate where inappropriate or conflicted advice has been confirmed about a relevant financial product via an AFCA determination'. Regarding the collapse of First Guardian Master Fund, Mr Berry confirmed three claims had been received by CSLR, 'with all three currently going through the information gathering process ahead of eligibility assessment'. Customers who are unsure if they are eligible are urged to contact AFCA to submit their claim. 'At this early stage, the CSLR is not in a position to speculate on the volume or dollar amount of potential claims that the scheme may receive related to the First Guardian Master Fund,' he told NewsWire. About 6000 Australians invested $590m into First Guardian, which was established in 2019 as a management investment scheme. Investors were advised to roll over their superannuation into a retail super fund, then invest their money into First Guardian. Customers said they were unaware their funds were being transferred to First Guardian Master Fund despite the details being written in the company's legal documents. FTI Consulting liquidators Paul Harlond and Ross Blakely, who released their preliminary report into the fund, said they 'intend to undertake further investigations', including the determination 'whether any breaches of the Corporations Act or any other laws have occurred by any party … or any other circumstances exist, which may give rise to a potential claim by investors'. The liquidators said they were 'seeking compensation on behalf of members of the fund for losses suffered', which could be as high as $446m. However, members have been warned they may never see their funds again. FTI Consulting's assessment found the 'overall recoverable value of the investments is likely to be considerably less than their combined book value' and a 'substantial shortfall of recoverable assets to outstanding investor funds will therefore likely arise in the liquidation'. In the report, the liquidators said 'a large proportion of investors in the (First Guardian Master Fund) invested through investment platforms', adding the recovered funds may not be as high as hoped. ' … the liquidators consider the value of the assets may have been overstated in the accounts,' the report read. 'It is very likely that some of the funds' assets/investments are not recoverable or will not recover their full ascribed value. Indeed, significant shortfalls to book values are expected.' The liquidators said it would take more than a year to complete their investigation and wind up the business due to the 'complexity and number of outstanding matters' in the liquidation. Corporate watchdog the Australian Securities and Investments Commission (ASIC) confirmed it was launching an investigation into the fund. The watchdog also confirmed it had launched an investigation into Falcon Capital Ltd managing director David Anderson, who allegedly funnelled funds from superannuation members into his failed property developments and craft breweries. Mr Anderson's assets have been frozen and his passport has been seized as Federal Court-appointed liquidators and investigators sort through financial records. The watchdog alleges $5.6m was deposited into Mr Anderson's ANZ account between June 2022 and September last year 'without any legitimate basis for payments in that amount being apparent to ASIC or disclosed to investors'. ASIC also alleges Mr Anderson used $16,000 to make mortgage payments on his $9m home overlooking the Yarra River. Mr Anderson's legal representative, Dan Mackay of Mackay Chapman, told the ABC last week 'there have been no findings of fact or law by any court or tribunal, nor by ASIC'. 'Mr Anderson will fully exercise his rights in response to allegations which may be made against him at the appropriate time in the appropriate forum,' Mr Mackay said. An ASIC spokesman said its 'first priority has been to preserve any remaining assets of the scheme so they can be recovered for investors'. 'Following concerns raised by ASIC, the Federal Court appointed liquidators to Falcon Capital and ordered the wind up of First Guardian and its related funds in April. The court also restrained David Anderson, a director of Falcon, from dealing with his assets and appointed a receiver to his personal property,' he said. 'ASIC's investigation suggests that potential consumers were called and referred to personal financial advice providers who advised consumers to roll their superannuation assets into a retail choice superannuation fund and then to invest part or all of their superannuation into First Guardian. 'While ASIC's investigation is ongoing, the Federal Court has made interim travel restraint orders against Falcon Capital director David Anderson on ASIC's application. 'The court also made interim orders freezing the assets of another Falcon director, Simon Selimaj, and restraining his travel. Those orders are in place until 27 February 2026.' No charges have been laid. To those impacted, the spokesman said he understood 'the circumstances surrounding First Guardian are distressing for those affected' and it was 'one of ASIC's priorities to investigate what has happened'.
Perth Now
4 days ago
- Business
- Perth Now
Next move after super fund collapse
Thousands of Australians who are at risk of losing their nest eggs may have a chance at getting some money back after the federal government ordered a review into a key compensation scheme. First Guardian Master Fund collapsed earlier this year, leaving thousands of Australians in the lurch and unsure if they will ever see their money again. Since 2024, Australians who lose money from a failed or collapsed financial company can claim up to $150,000 through the Compensation Scheme of Last Resort (CSLR) – a scheme that offers compensation to people in relation to complaints about personal financial advice, credit intermediation, securities dealing or credit provision. However, Assistant Treasurer and Financial Services Minister Daniel Mulino has ordered a review of the scheme, as it only offers limited funding and may not be able to cover all the losses when a company crashes. Currently, the scheme puts a cap of $20m on each of the four listed areas. The federal government is ordering a review of its compensation scheme. NewsWire / Simon Bullard. Credit: News Corp Australia Mr Mulino said the CSLR was in need of a review and was considering imposing a special levy to meet a significant shortfall, with the Financial Services Council (FSC) saying the scheme's costs had blown out by 840 per cent on initial estimates. 'The CSLR pays compensation to claimants where an eligible determination issued by the Australian Financial Complaints Authority (AFCA) remains unpaid,' Mr Mulino said. In July, the CSLR operator revised the scheme's cost to $75.7m, of which $67.3m was attributable to the personal advice sector in 2025-2026. 'This exceeds the $20m limit on levies that can be applied to the advice sub-sector to fund the claim,' he said. 'This has triggered the option available to me as the responsible minister under the CSLR legislation to raise a special levy to pay for the excess costs. 'I have asked Treasury to consult on all statutory options available to deal with this matter. 'The paper seeks feedback on a broad range of options to inform my decision.' Financial Services Minister Daniel Mulino has ordered a review. NewsWire / Martin Ollman Credit: News Corp Australia FSC chief executive Blake Briggs welcomed the scheme's review, promising to work 'constructively' with Treasury. In a statement, Mr Briggs argued the government scheme needed to be brought under control and made sustainable before imposing the special levy. 'The industry welcomes the minister's engagement on the CSLR special levy,' he said. 'In considering whether and how to determine a special levy, the minister should have regard to the risk of entrenching further moral hazard into the scheme through underwriting investment losses, the financial sustainability and viability of sub-sectors, and spreading the cost as widely as possible to minimise the burden on any one sector.' He said the minister should 'prioritise responding to the outcomes of Treasury's review of the design of the scheme', which was established to 'assess the scheme's framework, scope and sustainability on an ongoing basis'. 'If the industry is going to bear the costs of the $47m special levy, the industry needs assurance that the scheme will not continue to blow out year on year,' he added. 'Already we have seen the scheme blow out by 840 per cent from Treasury's initial estimate of $8.1m per year to $75.7m. The Financial Services Council has welcomed the review. NewsWire / Nicholas Eagar Credit: NewsWire CSLR chief executive David Berry told NewsWire the scheme could 'only compensate where inappropriate or conflicted advice has been confirmed about a relevant financial product via an AFCA determination'. Regarding the collapse of First Guardian Master Fund, Mr Berry confirmed three claims had been received by CSLR, 'with all three currently going through the information gathering process ahead of eligibility assessment'. Customers who are unsure if they are eligible are urged to contact AFCA to submit their claim. 'At this early stage, the CSLR is not in a position to speculate on the volume or dollar amount of potential claims that the scheme may receive related to the First Guardian Master Fund,' he told NewsWire. Mr Mulino is considering introducing a special levy. NewsWire / Martin Ollman Credit: News Corp Australia About 6000 Australians invested $590m into First Guardian, which was established in 2019 as a management investment scheme. Investors were advised to roll over their superannuation into a retail super fund, then invest their money into First Guardian. Customers said they were unaware their funds were being transferred to First Guardian Master Fund despite the details being written in the company's legal documents. FTI Consulting liquidators Paul Harlond and Ross Blakely, who released their preliminary report into the fund, said they 'intend to undertake further investigations', including the determination 'whether any breaches of the Corporations Act or any other laws have occurred by any party … or any other circumstances exist, which may give rise to a potential claim by investors'. More than 6000 Australians are at risk of never seeing their superannuation again. NewsWire/ David Crosling Credit: News Corp Australia The liquidators said they were 'seeking compensation on behalf of members of the fund for losses suffered', which could be as high as $446m. However, members have been warned they may never see their funds again. FTI Consulting's assessment found the 'overall recoverable value of the investments is likely to be considerably less than their combined book value' and a 'substantial shortfall of recoverable assets to outstanding investor funds will therefore likely arise in the liquidation'. In the report, the liquidators said 'a large proportion of investors in the (First Guardian Master Fund) invested through investment platforms', adding the recovered funds may not be as high as hoped. ' … the liquidators consider the value of the assets may have been overstated in the accounts,' the report read. 'It is very likely that some of the funds' assets/investments are not recoverable or will not recover their full ascribed value. Indeed, significant shortfalls to book values are expected.' The liquidators said it would take more than a year to complete their investigation and wind up the business due to the 'complexity and number of outstanding matters' in the liquidation. ASIC has launched an investigation into the First Guardian collapse. NewsWire / Nicholas Eagar Credit: NCA NewsWire Corporate watchdog the Australian Securities and Investments Commission (ASIC) confirmed it was launching an investigation into the fund. The watchdog also confirmed it had launched an investigation into Falcon Capital Ltd managing director David Anderson, who allegedly funnelled funds from superannuation members into his failed property developments and craft breweries. Mr Anderson's assets have been frozen and his passport has been seized as Federal Court-appointed liquidators and investigators sort through financial records. The watchdog alleges $5.6m was deposited into Mr Anderson's ANZ account between June 2022 and September last year 'without any legitimate basis for payments in that amount being apparent to ASIC or disclosed to investors'. ASIC also alleges Mr Anderson used $16,000 to make mortgage payments on his $9m home overlooking the Yarra River. Mr Anderson's legal representative, Dan Mackay of Mackay Chapman, told the ABC last week 'there have been no findings of fact or law by any court or tribunal, nor by ASIC'. 'Mr Anderson will fully exercise his rights in response to allegations which may be made against him at the appropriate time in the appropriate forum,' Mr Mackay said. The First Guardian liquidators warned customers may never see their money again. NewsWire/ David Crosling Credit: News Corp Australia An ASIC spokesman said its 'first priority has been to preserve any remaining assets of the scheme so they can be recovered for investors'. 'Following concerns raised by ASIC, the Federal Court appointed liquidators to Falcon Capital and ordered the wind up of First Guardian and its related funds in April. The court also restrained David Anderson, a director of Falcon, from dealing with his assets and appointed a receiver to his personal property,' he said. 'ASIC's investigation suggests that potential consumers were called and referred to personal financial advice providers who advised consumers to roll their superannuation assets into a retail choice superannuation fund and then to invest part or all of their superannuation into First Guardian. 'While ASIC's investigation is ongoing, the Federal Court has made interim travel restraint orders against Falcon Capital director David Anderson on ASIC's application. 'The court also made interim orders freezing the assets of another Falcon director, Simon Selimaj, and restraining his travel. Those orders are in place until 27 February 2026.' No charges have been laid. To those impacted, the spokesman said he understood 'the circumstances surrounding First Guardian are distressing for those affected' and it was 'one of ASIC's priorities to investigate what has happened'.
Business Wire
5 days ago
- Business
- Business Wire
KBRA Assigns Ratings to Surplus Notes of Venerable Operating Entities
NEW YORK--(BUSINESS WIRE)--KBRA assigns a rating of "BBB+' with Stable Outlook to $175 million 7.75% surplus notes due 2045 ('Notes') issued by Venerable Insurance and Annuity Company (VIAC) and $175 million 7.75% surplus notes due 2045 issued by Corporate Solutions Life Reinsurance Company (CSLR). VIAC and CSLR are insurance operating subsidiaries of Venerable Holdings, Inc. (Venerable) that have KBRA Insurance Financial Strength Ratings of A with a Stable Outlook. As surplus notes, the Notes are deeply subordinated, and payments thereon are subject to the prior approval of the Iowa Division of Insurance. If any payments are not approved, the payment will be extended until approval is given. Interest will continue to accrue on any unpaid principal, but interest will not accrue on unpaid interest. Given that VIAC's business is reinsured to CSLR and CSLR is a subsidiary of VIAC, and similar to the existing surplus notes, the CSLR surplus notes were issued to VIAC and mirror the terms of the notes issued by VIAC to investors. The surplus notes were issued in conjunction with Venerable's transaction to reinsure variable annuity business of certain subsidiaries of Corebridge Financial, Inc. that closed on August 1, 2025. Venerable is a privately held company that owns and manages legacy variable annuity business, including variable annuities acquired from other entities. During 2023, it established Venerable Investment Advisers, LLC, which has overall responsibility for the management of mutual funds underlying VIAC's variable annuity products. To access ratings and relevant documents, click here. Methodologies Disclosures A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1010678
Yahoo
19-05-2025
- General
- Yahoo
Newby West roundabout work 'on track' and 'progressing well' says council
Work on the Newby West roundabout are 'on track' and 'progressing well' according to Cumberland Council. A new section of the new roundabout is now open, and work teams have been removing the old roundabout, signage and lighting in preparation for the earthwork and drainage contractors to start next week. A spokesperson for Cumberland Council said: 'Works at Newby West Roundabout are on track and progressing well with traffic now moved onto the newly built section. 'We'd like to thank you for your support and patience whilst we complete these works.' The work has been undertaken as part of the Carlisle Southern Link Road (CSLR) project. READ MORE: Carlisle Southern Link Road to open fully by the end of the year | News and Star The Carlisle Southern Link Road will connect Junction 42 of the M6 with the A595 to the west. The route will include new junctions linking existing radial routes into Carlisle and the proposed 10,000 home Garden Village. The 8km route will include bridges over two main railway lines and the Caldew and Petteril rivers, a network of footways and cycleways and an extensive programme of landscaping and environmental mitigation.
Yahoo
30-04-2025
- Business
- Yahoo
SunPower Reports Q1'25: $80.2M Revenue, $1.3M Profit¹
First Profitable Quarter In Four Years OREM, Utah, April 30, 2025 (GLOBE NEWSWIRE) -- SunPower, formerly d/b/a Complete Solaria, Inc. ('SunPower' or the 'Company') (Nasdaq: SPWR), a solar technology, services, and installation company, will present its 2024 and Q1'25 results via webcast at 1:00pm ET on Wednesday, April 30. Interested parties may access the webcast by registering here or by visiting the Events page within the IR section of the company website: Please see our SunPower rebranding announcement on the back page of the April 29 print version of the Wall Street Journal or on the mobile app for the WSJ print version, where it will reside for the next week. SunPower chairman and CEO, T.J. Rodgers commented, 'This is the Company's second quarterly report after the SunPower asset purchase on September 30, 2024, and our first report as SunPower, after rebranding with that name on April 21, 2025. The rebranding also fortuitously coincides with SunPower's first profitable quarter in four years.' SunPower Revenue & Operating Income Our First Two Quarters as SunPower GAAP2 NON-GAAP ($1000s, except gross margin) Q1 2025 Q4 2024 Q1 20253 Q4 2024 Revenue 80,174 88,674 80,174 88,674 4 Gross Margin 36 % 47 % 36 % 47 %4 Operating Expenses 27,366 62,769 27,366 62,769 Operating Expenses 12,270 49,870 12,270 49,870 Less Commission Operating Income/(Loss) (8,876 ) (21,501 ) 1,274 (5,940 ) Cash Balance5 13,995 13,308 13,995 13,308 _____________________________________ 1 Operating profit based on the non-GAAP results posted on our website [ To see our audited 2024 GAAP financial statements, go to the SEC 10K filing on our website [ Our non-GAAP financials are used to run the company and differ from the official GAAP report in three ways: 1) no non-cash amortization of intangibles, no employee stock compensation charges (already reflected in share count by dilution) and no one-time events, including favorable and unfavorable events. (See note 4.)4 The Q4'24 revenue and gross margin reported in our unaudited January 21, 2025 shareholder letter were lower, $81,103 and 37%, respectively. These figures were accurate and conformed to our CSLR revenue recognition standards on that date. The numbers presented here are calculated using the harmonized revenue recognition standards for the combined company from the audited 2024 results. Internally, we use our original Q4'24 forecast to judge our performance. For example, the 47% Q4'24 gross margin is inflated by jobs bought from SunPower at no COGS cost, and should not be used in a forward-looking projections.5 Cash balance is exclusive of restricted cash. Fellow Shareholders: Our Q1'25 revenue, earnings and cashflow are given above. They feature identical GAAP and non-GAAP results for the quarter, except for GAAP operating income, which contains charges from depreciation and amortization of intangible assets, stock-based compensation charges, and non-recurring events, mostly from the asset purchase. Rodgers added, 'I congratulate our team for breaking the profit barrier just 180 days after launch, despite enduring layoffs and some hard times in the solar industry. The rest of this report will focus on our other important first-quarter accomplishments.' Summary of SunPower Q1'25 Accomplishments Our $80.2 million Q1'25 revenue was in line with expectations, and it was achieved in the traditionally difficult winter quarter. (For example, Blue Raven operates in the Midwest and often has to remove snow from customers' roofs during winter.) SunPower is now properly and leanly staffed. The new SunPower was launched with the combined headcounts of Complete Solar, SunPower and Blue Raven Solar – 3,499 employees – on October 1, 2024. We reduced the staffing by 3x, to 1,140 one quarter later, as graphed below. Our final headcount target for the combined company was first set at 1,225 and then lowered to 980. We are currently ahead of that plan with 906 employees. We are at the right headcount to be profitable at $300 million in annualized new employees. We are now able to recycle a fraction of the salaries saved from headcount reductions to bring in key industry players. For example, we hired Dr. Richard Swanson, the Stanford technical genius and founder of SunPower, to advise us on technology, as well as our new CTO, Dr. Mehran Sedigh, a storage expert who ran the Enphase Battery business unit and ramped it to its current $500 million in revenue. Our headcount and cost reductions led to $1.3 million operating income in Q1'25. Our continuous cost-cutting measures have improved our operating income over the last three quarters from a $39.6 million loss in Q3'24 (unofficial sum of losses for three companies), to a loss of $5.9 million in Q4'24 (audited), to an operating profit of $1.3 million in Q1'25. Our cash balance grew (slightly). We finished Q1'25 with $14.0 million in cash versus $13.3 million in Q4'24. Outlook We forecast steady revenue and positive operating income again next quarter. We will provide a more detailed forecast and growth plan during our May annual meeting. Subsequent Events We are now SunPower (Nasdaq: SPWR). On April 21, the Company announced it has rebranded as SunPower, a tradename we own. The company's ticker symbols have been changed from 'CSLR' and 'CSLRW' to 'SPWR' and 'SPWRW', respectively, effective April 22, 2025. Strategic partnership with Sunder. We have partnered with Sunder, a large, highly regarded Salt-Lake area solar sales firm. They are now supporting our growth, which should start to show up on the top line in Q3'25. We strengthened our board with three pubic-company ex-CEO directors: Lothar Maier, former CEO of Linear Technology, a $1.4 billion Silicon Valley chip company; Dan McCranie, the former chairman of five high-tech companies, including Freescale and On, the two public companies spun out by Motorola Semiconductor; and Jamie Haenggi, the former CEO of ADT Solar. We have a fully independent board. A current independent director, Ron Pasek, now has been named the Lead Director for the corporation and Dan McCranie has been named as the Compensation Committee Chairman serving respectively for T.J. Rodgers (Chairman) and Tony Alvarez (Compensation Committee Chair) who are not independent directors because they worked for the company or a predecessor company in the last five years. SunPower Board (4/30/25) DIRECTOR STATUS PRIOR DEGREE/UNIVERSITY SOLAR VETERAN (Bolded) Tony Alvarez CEO BEE Georgia Tech, MSEE Georgia Tech Complete Solar, SunEdison, ChipMOS, Cypress* Will Anderson CEO BS Mgmt Science MIT, MBA Stanford Same Day Solar, Complete Solar Adam Gishen I VPIR BS Int'l Studies Univ. of Leeds Credit Suisse, Ondra, Lehman Bros. *Jamie Haenggi I CEO BS Int'l Relations Univ. of Minnesota ADT Solar, Vonage Chris Lundell CEO BS Finance, MBA Finance BYU Vivint, DOMO, Novell *Lothar Maier I CEO BS Chemical Eng UC Berkley Linear Tech, Cypress *Dan McCranie I CEO BS EE Virginia Tech ENVX, Cypress Semi, SEEQ, AMD Ron Pasek I CFO BS Finance SJSU, MBA Santa Clara NetApp, Alterra, Sun Micro T.J Rodgers CEO BA Dartmouth, MA/PhD EE Stanford SunPower, Complete Solar, Enphase, Cypress Tidjane Thiam I CEO BS Ecole Polytechnique, MBA INSEAD Credit Suisse, Prudential, Aviva, McKinsey & Co. Devin Whatley I VC BA East Asian Studies UCLA, MBA Penn Ecosystem Integrity Fund, Zep Solar, Pegasus * New (3) Independent (64%) *Cypress Semiconductor Corporation Rodgers concluded, 'Our successive $80 million-plus quarters re-define our Company with an annualized revenue of $300 million-plus, now producing a $1 million-plus quarterly operating profit. The market is beginning to recognize that fact.' About SunPowerSunPower has become a leading residential solar services provider in North America. SunPower's digital platform and installation services support energy needs for customers wishing to make the transition to a more energy-efficient lifestyle. For more information visit Non-GAAP Financial MeasuresIn addition to providing financial measurements based on generally accepted accounting principles in the United States of America ("GAAP"), SunPower provides an additional financial metrics in this press release that are not prepared in accordance with GAAP ("non-GAAP"). Management believes the non-GAAP financial measures, in addition to GAAP financial measures, are useful measures of operating performance because the non-GAAP financial measure does not include the impact of items that management does not consider indicative of SunPower's operating performance, such as amortization of goodwill and expensing employee stock options in addition to accounting for their dilutive effect, which facilitates the analysis of the company's core operating results across reporting periods. The non-GAAP financial measures do not replace the presentation of SunPower's GAAP financial results and should only be used as a supplement to, not as a substitute for, SunPower's financial results presented in accordance with GAAP. Descriptions of and reconciliations of the non-GAAP financial measures used in this press release are included in the financial table above and related footnotes. We encourage investors to carefully consider our preliminary results under GAAP, as well as our preliminary non-GAAP information and the reconciliations between these presentations, to more fully understand our business. Non-GAAP financial measures are reported in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Forward Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about us and our industry that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as 'will,' 'goal,' 'prioritize,' 'plan,' 'target,' 'expect,' 'focus,' 'forecast,' 'look forward,' 'opportunity,' 'believe,' 'estimate,' 'continue,' 'anticipate,' and 'pursue' or the negative of these terms or similar expressions. Forward-looking statements in this press release include, without limitation, our Q1'25 revenue projection, our expectations regarding our Q1'25 and fiscal 2025 financial performance, including with respect to our Q1'25 and fiscal 2025 combined revenues and profit before tax loss, expectations and plans relating to further headcount reduction, cost control efforts, and our expectations with respect to when we achieve breakeven operating income and positive operating income, including our forecast to be operating income breakeven in Q2'25. Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties, including, without limitation, our ability to implement further headcount reductions and cost controls, our ability to integrate and operate the combined business with the SunPower assets, our ability to achieve the anticipated benefits of the SunPower acquisition, global market conditions, any adjustments, changes or revisions to our financial results arising from our financial closing procedures, the completion of our audit and financial statements for Q1'25 and fiscal 2025, and other risks and uncertainties applicable to our business. For additional information on these risks and uncertainties and other potential factors that could affect our business and financial results or cause actual results to differ from the results predicted, readers should carefully consider the foregoing factors and the other risks and uncertainties described in the 'Risk Factors' section of our annual report on Form 10-K to be filed with the SEC on April 30, 2025, our quarterly reports on Form 10-Q filed with the SEC and other documents that we have filed with, or will file with, the SEC. Such filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements in this press release speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and SunPower assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Preliminary Unaudited Financial ResultsThe selected unaudited financial results for the Q1'25 are preliminary and subject to our quarter and year-end accounting procedures and external audit by our independent registered accounting firm. As a result, the financial results presented in this press release may change in connection with the finalization of our closing and reporting processes and financial statements for Q1'25 and fiscal 2025 and may not represent the actual financial results for such quarter and full year. In addition, the information in this press release is not a comprehensive statement of our financial results for Q1'25 or the 2025 fiscal year, should not be viewed as a substitute for full, audited financial statements prepared in accordance with generally accepted accounting principles, and are not necessarily indicative of our results for any future period. Company Contacts: Dan Foley CFO (858) 212-9594 Sioban Hickie VP Investor Relations & MarketingIR@ (801) 477-5847 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (PRELIMINARY) (In Thousands) COMPLETE SOLARIA, INC. - AS REPORTED SPWR - Unaudited 13 weeks ended 13 weeks ended 13 weeks ended *13 weeks ended *13 weeks ended March 31, 2024 June 30, 2024 29-Sep-24 29-Dec-24 30-Mar-24 GAAP operating loss from continuing operations (7,544) (9,494) (29,770) (21,501) (8,876) Note Depreciation and amortization A 357 329 305 1,745 1,146 Stock based compensation B 1,341 1,229 1,516 (1,019) 5,756 Restructuring charges C 406 2,603 21,072 14,835 3,248 Total of Non-GAAP adjustments 2,104 4,161 22,893 15,561 10,150 Non-GAAP net loss (5,440) (5,333) (6,877) (5,940) 1,274 Notes: (A) Depreciation and amortization: Depreciation and amortization related to capital expenditures. (B) Stock-based compensation: Stock-based compensation relates to our equity incentive awards and for services paid in warrants. Stock-based compensation is a non-cash expense. (C) Acquisition Costs: Costs primarily related to acquisition, headcount reductions (i.e. severance), legal, professional services (i.e. historical carveout audits) and due diligence. *Reflects the acquisition of the SunPower Assets which Complete Solaria acquired on 9/30/24. Source: SunPower Photos accompanying this announcement are available at in to access your portfolio
