Sign In  |  Register  |  About Sunnyvale  |  Contact Us

Sunnyvale, CA
September 01, 2020 10:10am
7-Day Forecast | Traffic
  • Search Hotels in Sunnyvale

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

iSun Inc. Reports Third Quarter 2022 Results

Revenues of $19.0 million, 185% increase over Q3 2021 and 15.5% increase from Q2 2022, driven by solid execution and increased demand

iSun, Inc. (NASDAQ: ISUN) (the “Company,” or “iSun”), a leading solar energy and clean mobility infrastructure company with 50 years of experience accelerating the adoption of innovative electrical technologies, today announced financial results for the third quarter of 2022.

Quarterly Highlights

  • Revenue of $19.0 million, an increase of 185% from the third quarter of 2021
  • Gross profit of $3.6 million, compared to $1.3 million in last year’s third quarter
  • Awarded $9.3 million, 12.1 MW contracts with a new customer, expanding footprint in Maine
  • Awarded $3.0 million, 3.2 MW contract in Maryland, expanding presence in Mid-Atlantic, one of largest energy markets in US
  • Signs new $25 million credit facility to support growth plans and refinance debt subsequent to quarter

Management Commentary

“Our revenue nearly tripled in the third quarter, up to $19 million, despite continuing industry-wide challenges,” said Jeffrey Peck, Chief Executive Officer of iSun. “We added $50.2 million in backlog and our total backlog is now a record $179.1 million. Our pipeline reached 1.3GW of projects as of the end of this year’s third quarter, up 1GW from the same point last year. We are really proud of the team’s hard work in attaining these results. I believe we’re beginning to recognize our potential, leveraging the strategic investments made over the past year to build out our platform and footprint, with opportunities to scale and drive accelerated growth over the longer-term. Most importantly, we believe that the support and stability provided in the recent climate change legislation removes uncertainty and impediments to financing and constructing the longer-term commitments that are necessary to build the alternative energy our country needs, which aligns so well with our company mission.”

Third Quarter and Year-to-Date Results

iSun reported third quarter 2022 revenue of $19.0 million, representing a $12.4 million or 185% increase over the same period in 2021. YTD revenue in 2022 was $50.6 million, representing a $32.3 million or 177% increase over the same period in 2021. This year’s revenue growth was driven by the continued fulfillment of increased residential consumer demand and execution on the higher commercial and industrial backlog, which was $179.1 million as of September 30, 2022. iSun also generated new future demand by adding $50.2 million in new business during the third quarter.

Divisional highlights include:

  • Residential division generated revenue of $10.2 million and $24.3 million in the third quarter and YTD, respectively. Customer orders are approximately $25.8 million and expected to be completed within three to six months.
  • Commercial division generated revenue of $1.1 million and $3.4 million in the third quarter and YTD, respectively, and has a contracted backlog of approximately $12.6 million expected to be completed within six to eight months.
  • Industrial division generated revenue of $5.9 million and $19.1 million in the third quarter and YTD, respectively, and has a contracted backlog of approximately $140.7 million expected to be completed within 12 to 18 months.
  • Utility and development division generated revenue of $1.8 million and $3.8 million in the third quarter and YTD, respectively. The Utility division has 1.3 GW of projects currently under development with projects achieving NTP in 2023.

Gross profit in the third quarter was $3.6 million compared to $1.3 million in the third quarter of 2021. Gross margin for the quarter was 19.0%, compared to 19.5% in the same period in 2021. YTD gross profit was $10.5 million compared to $0.8 million in the same period in 2021. YTD gross margin was 20.8% compared to 4.3% in the same period in 2021. As synergies among the company’s segments grow, gross margin is expected to strengthen.

Operating income in the third quarter was a loss of ($4.9) million compared to a loss of ($1.6) million in 2021’s third quarter. YTD operating income was a loss of ($16.2) million compared to a loss of ($7.0) million in the same period in 2021. Non-cash depreciation and amortization expenses were $1.8 million in the third quarter of 2022, compared to $0.3 million in prior year period. YTD 2022 non-cash depreciation and amortization expenses were $5.3 million compared to $0.6 million in the same period in 2021.

iSun reported a net loss of ($4.9) million, or ($0.36) per share in the third quarter of 2022, compared to a net loss of ($0.7) million, or ($0.08) per share in the same period in 2021. YTD 2022 net loss was ($13.5) million or ($0.98) per share compared to a net loss of ($5.1) million or ($0.60) per share in the same period in 2021.

Adjusted EBITDA for the third quarter of 2022 was a loss of ($2.5) million or (0.18) per share, compared to a loss of ($1.1) million or ($0.12) per share in the same period in 2021. YTD 2022 Adjusted EBITDA was a loss of ($3.4) million or ($0.24) per share, compared to a loss of ($4.8) million or ($0.56) per share in the same period in 2021.

Subsequent to the third quarter, iSun secured a new debt facility of $25 million; the agreement was finalized on November 4, 2022. John Sullivan, Chief Financial Officer, stated, “We are very pleased with our new credit facility, which refinances our current debt and provides capital for continued growth. We remain focused on strengthening our balance sheet to improve our cash position and liquidity ratios. Collections remain strong, enabling us to invest in inventory to meet the needs of our growing customer backlog and mitigate supply chain risks.”

Outlook

iSun’s comprehensive platform and recent investments position the company to respond effectively to increased energy demand associated with both solar energy and automotive electrification, and make iSun an important partner to consumers, businesses, industries, and utilities as they transition to renewable energy sources. iSun expects the recent climate legislation, contained in the Inflation Reduction Act of 2022, to provide a more favorable environment for solar development and EV infrastructure over the next 10 years.

In the near term, iSun currently expects that continued supply chain constraints affecting key materials in the solar industry and elongated permitting cycles for commercial projects, as well as continued delays in finalizing major utility division contracts, will extend the revenue recognition of anticipated 2022 projects into 2023. Accordingly, the company now anticipates total revenue for full-year 2022 between $70-75 million, representing approximately 60-65% growth from full-year 2021.

Added Mr. Peck, “Our full portfolio of capabilities position us to accelerate our growth trajectory, as demonstrated by the increased number of recent significant contract awards. Our platform delivers a much-needed suite of services and our team brings the experience and expertise to execute on our customers’ needs. We are experiencing increased demand and a growing customer base, driven by the significant higher residential and commercial energy costs. Now that our country’s energy policy has been established for the next 10 years, we are confident that the macroeconomic factors exist to enable us to scale significantly and generate higher longer-term revenue growth.”

Third Quarter 2022 Conference Call Details

iSun will host a conference call today, Tuesday, November 15, at 8:30 AM ET to review the Company’s financial results and discuss recent events. Participants can access the live conference call via telephone at 1-888-506-0062 (domestic) or 1-973-528-0011 (international), using conference ID 141389, or via webcast in the Investor Relations section of the iSun website at investors.isunenergy.com. An audio replay will be available through Wednesday, November 30, 2022, and can be accessed by dialing 1-877-481-4010 (domestic) or 1-919-882-2331 (international), using conference code 47018. A webcast of the conference call will be available beginning approximately one hour after the call is completed at investors.isunenergy.com.

iSun, Inc.

Consolidated Balance Sheets

September 30, 2022 (Unaudited) and December 31, 2021

(In thousands, except number of shares)

 

September 30,

2022

 

 

December 31,

2021

 

Assets

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash

 

$

3,806

 

 

$

2,242

 

Accounts receivable, net of allowance

 

 

11,755

 

 

 

14,337

 

Costs and estimated earnings in excess of billings

 

 

3,653

 

 

 

4,004

 

Inventory

 

 

3,462

 

 

 

2,480

 

Other current assets

 

 

1,064

 

 

 

1,071

 

Total current assets

 

 

23,740

 

 

 

24,134

 

Other Assets:

 

 

 

 

 

 

 

 

Property and equipment, net of accumulated depreciation

 

 

8,796

 

 

 

11,091

 

Captive insurance investment

 

 

270

 

 

 

270

 

Goodwill

 

 

36,907

 

 

 

36,907

 

Intangible assets, net

 

 

15,243

 

 

 

18,858

 

Investments

 

 

12,120

 

 

 

12,420

 

Other assets

 

 

48

 

 

 

48

 

Total other assets

 

 

73,384

 

 

 

79,594

 

Total assets

 

$

97,124

 

 

$

103,728

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

8,980

 

 

$

13,188

 

Accrued expenses

 

 

7,723

 

 

 

7,628

 

Billings in excess of costs and estimated earnings on uncompleted contracts

 

 

6,143

 

 

 

2,389

 

Line of credit

 

 

5,646

 

 

 

4,468

 

Current portion of deferred compensation

 

 

31

 

 

 

31

 

Current portion of long-term debt

 

 

565

 

 

 

6,694

 

Total current liabilities

 

 

29,088

 

 

 

34,398

 

Long-term liabilities:

 

 

 

 

 

 

 

 

Deferred compensation, net of current portion

 

 

6

 

 

 

28

 

Deferred tax liability

 

 

-

 

 

 

772

 

Warrant liability

 

 

50

 

 

 

148

 

Other liabilities

 

 

2,318

 

 

 

3,375

 

Long-term debt, net of current portion

 

 

2,100

 

 

 

5,149

 

Total liabilities

 

 

33,562

 

 

 

43,870

 

Commitments and Contingencies (Note 8)

 

 

-

 

 

 

-

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock – 0.0001 par value 49,000,000 shares authorized, 15,227,582 and 11,825,878 issued and outstanding as of September 30, 2022 and December 31, 2021, respectively

 

 

2

 

 

 

1

 

Additional paid-in capital

 

 

78,086

 

 

 

60,863

 

Accumulated deficit

 

 

(14,526

)

 

 

(1,006

)

Total Stockholders’ equity

 

 

63,562

 

 

 

59,858

 

Total liabilities and stockholders’ equity

 

$

97,124

 

 

$

103,728

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

iSun, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

For the Three and Nine Months Ended September 30, 2022 and 2021

(In thousands, except number of shares)

 

 

Three Months ended

 

 

Nine Months ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Earned revenue

 

$

19,034

 

 

$

6,679

 

 

$

50,597

 

 

$

18,293

 

Cost of earned revenue

 

 

15,417

 

 

 

5,376

 

 

 

40,057

 

 

 

17,506

 

Gross profit

 

 

3,617

 

 

 

1,303

 

 

 

10,540

 

 

 

787

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warehousing and other operating expenses

 

 

172

 

 

 

79

 

 

 

1,539

 

 

 

207

 

General and administrative expenses

 

 

5,965

 

 

 

2,358

 

 

 

17,474

 

 

 

5,477

 

Stock based compensation – general and administrative

 

 

567

 

 

 

218

 

 

 

2,402

 

 

 

1,555

 

Depreciation and amortization

 

 

1,770

 

 

 

271

 

 

 

5,300

 

 

 

576

 

Total operating expenses

 

 

8,474

 

 

 

2,926

 

 

 

26,715

 

 

 

7,815

 

Operating loss

 

 

(4,857

)

 

 

(1,623

)

 

 

(16,175

)

 

 

(7,028

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on forgiveness of PPP Loan

 

 

-

 

 

 

-

 

 

 

2,592

 

 

 

-

 

Gain on sale of fixed assets

 

 

-

 

 

 

63

 

 

 

-

 

 

 

63

 

Change in fair value of the warrant liability

 

 

7

 

 

 

126

 

 

 

98

 

 

 

944

 

Interest expense, net

 

 

(84

)

 

 

(42

)

 

 

(800

)

 

 

(130

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(4,934

)

 

 

(1,476

)

 

 

(14,285

)

 

 

(6,151

)

(Benefit) provision for income taxes

 

 

-

 

 

 

(820

)

 

 

(765

)

 

 

(1,057

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(4,934

)

 

 

(656

)

 

 

(13,520

)

 

 

(5,094

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred shareholders’ dividend

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(69

)

Net loss available to shares of common stockholders

 

$

(4,934

)

 

$

(656

)

 

$

(13,520

)

 

$

(5,163

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share of Common Stock - Basic and diluted

 

$

(0.36

)

 

$

(0.08

)

 

$

(0.98

)

 

$

(0.60

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares of Common Stock - Basic and diluted

 

 

13,546,624

 

 

 

8,398,596

 

 

 

13,769,564

 

 

 

8,658,405

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Non-GAAP Financial Measures

Included in this presentation are discussions and reconciliations of earnings before interest, income tax and depreciation and amortization (“EBITDA”) and EBITDA adjusted for certain non-cash, non-recurring or non-core expenses (“Adjusted EBITDA”) to net loss in accordance with GAAP. Adjusted EBITDA excludes certain non-cash and other expenses, certain legal services costs, professional and consulting fees and expenses, and one-time Reverse Merger and Recapitalization expenses and certain adjustments. We believe that these non-GAAP measures illustrate the underlying financial and business trends relating to our results of operations and comparability between current and prior periods. We also use these non-GAAP measures to establish and monitor operational goals.

These non-GAAP measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute or superior to, the other measures of financial performance prepared in accordance with GAAP. Using only the non-GAAP financial measures, particularly Adjusted EBITDA, to analyze our performance would have material limitations because such calculations are based on a subjective determination regarding the nature and classification of events and circumstances that investors may find significant. We compensate for these limitations by presenting both the GAAP and non-GAAP measures of our operating results. Although other companies may report measures entitled “Adjusted EBITDA” or similar in nature, numerous methods may exist for calculating a company’s Adjusted EBITDA or similar measures. As a result, the methods that we use to calculate Adjusted EBITDA may differ from the methods used by other companies to calculate their non-GAAP measures.

The reconciliations of EBITDA and Adjusted EBITDA to net loss, the most directly comparable financial measure calculated and presented in accordance with GAAP, are shown in the table below:

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income (loss)

 

$

(4,934

)

 

$

(656

)

 

$

(13,520

)

 

$

(5,094

)

Depreciation and amortization

 

 

1.770

 

 

 

271

 

 

 

5,300

 

 

 

576

 

Interest expense

 

 

84

 

 

 

42

 

 

 

800

 

 

 

130

 

Stock based compensation

 

 

567

 

 

 

218

 

 

 

2,402

 

 

 

1,555

 

Change in fair value of warrant liability

 

 

(7

)

 

 

(126

)

 

 

(98

)

 

 

(944

)

Income tax (benefit)

 

 

-

 

 

 

(820

)

 

 

(765

)

 

 

(1,057

)

EBITDA

 

 

(2,520

)

 

 

(1,071

)

 

 

(5,881

)

 

 

(4,835

)

Other costs(1)

 

 

10

 

 

 

-

 

 

 

10

 

 

 

-

 

Adjusted EBITDA

 

$

(2,510

)

 

$

(1,071

)

 

$

(3,371

)

 

$

(4,834

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average shares outstanding

 

 

13,546,624

 

 

 

8,398,596

 

 

 

13,769,564

 

 

 

8,658,405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA per share

 

 

(0.18

)

 

 

(0.12

)

 

 

(0.24

)

 

 

(0.56

)

(1)

Other costs consist of one-time expenses related to the valuation of acquisitions of SolarCommunities, Inc.

About iSun Inc.

Since 1972, iSun has accelerated the adoption of proven, life-improving innovations in electrification technology. iSun has been the trusted service provider to Fortune 500 companies for decades and has installed clean rooms, fiber optic cables, flight simulators, and over 600 megawatts of solar systems. The Company currently provides a comprehensive suite of solar services across residential, commercial, industrial & municipal, and utility scale projects and provides solar electric vehicle charging solutions for both grid-tied and battery backed solar EV charging systems. iSun believes that the transition to clean, renewable solar energy is the most important investment to make today and is focused on profitable growth opportunities. Please visit www.isunenergy.com for additional information.

Forward Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, effective tax rate, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition.

The forward-looking statements included in this press release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the risk factors described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.

All forward-looking statements included in this press release are based on information currently available to us, and we assume no obligation to update any forward-looking statement except as may be required by law.

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 Sunnyvale.com & California Media Partners, LLC. All rights reserved.