Summary
This 8-K filing from Flex Ltd. (FLEX) announces preliminary financial results for its subsidiary, Nextracker Inc., for the three- and nine-month periods ended December 31, 2022, in connection with Nextracker's proposed Initial Public Offering (IPO). The preliminary results indicate significant year-over-year growth for Nextracker in both revenue and profitability. Specifically, revenue for the nine-month period grew substantially compared to the prior year, and the company expects a strong increase in gross profit, operating income, and net income. The filing also highlights Nextracker's positive net cash from operating activities for the nine-month period, a significant improvement from a cash outflow in the prior year, and a substantial backlog of firm orders.
Key Highlights
- 1Nextracker reports strong preliminary revenue growth, with the nine-month period ended December 31, 2022, showing $1,383 million compared to $1,018 million in the prior year.
- 2Profitability metrics are also showing significant improvement, with preliminary gross profit for the nine months at $196 million (vs. $108 million prior year) and net income at $98 million (vs. $45 million prior year).
- 3Non-GAAP measures also reflect robust performance, with Adjusted EBITDA for the nine-month period reaching $136 million, more than double the prior year's $70 million.
- 4Net cash provided by operating activities turned positive at $72 million for the nine-month period, a significant swing from a $(106) million outflow in the same period last year.
- 5Nextracker has a substantial backlog of firm orders valued at approximately $2.1 billion as of December 31, 2022, excluding projects in negotiation.
- 6Flex Ltd. has initiated the roadshow for Nextracker's IPO, with an expected price range of $20.00 to $23.00 per share, and underwriters have an option for additional shares.
- 7The preliminary financial results are unaudited and subject to change as Nextracker finalizes its financial statements; investors should not place undue reliance on these estimates.