Q1 Revenues double over Q1 2021 while
approaching breakeven EBITDA
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 results for the first
quarter of 2022.
Highlights
- Revenue of $15.1 million in the first quarter, up 107.8%
over the first quarter in 2021
- Gross profit of $3.2 million in the first quarter compared
to $0.1 million for the same period in 2021.
- Gross margins of 21.0% in the first quarter, marks third
consecutive quarter of margin improvement
- Approaching break-even EBITDA despite seasonal impact to
installations
- Backlog grew to $128.3 million adding approximately $41.2
million in new customer demand and contracts during the
quarter
Management Commentary “We
continue to see exceptional growth with the doubling of our revenue
in Q1 over the prior year,” said Jeffrey Peck, Chairman and Chief
Executive Officer of iSun. We expect to see this growth continue
into Q2 as we transition out of the seasonality of the Northeast.
Our customer demand continues to accelerate evident by the growth
in our overall backlog totaling $128.3 million with new demand of
$41.2 million generated in the quarter. iSun is well positioned in
this rapidly evolving energy market to accelerate the adoption of
solar and meet the demand as it occurs in each segment.”
First Quarter Results iSun
reported first quarter 2022 revenue of $15.1 million representing a
$7.8 million or 107.8% increase over the same period in 2021.
Revenue growth was driven by the continued fulfillment of
residential consumer demand and execution of our commercial and
industrial backlog. While we continued to execute against our
existing backlog, we also generated new demand and added $41.2
million in new business during Q1.
Gross profit in the first quarter was $3.2 million compared to
$0.1 million during the 1st quarter 2021. Consolidated gross margin
for the quarter was 21.0%, compared to 1.6% over the same period
2021. The margin improvement represents the third consecutive
quarter in which our margin has improved. As we grow synergies and
efficiencies among our segments, the strengthening of our margin is
expected to continue.
Consolidated operating income was a loss of $5.7 million
compared to a loss of $2.6 million over the same period 2021. We
acquired several intangible and fixed assets in 2021 that began to
amortize in 2022. Our non-cash depreciation and amortization
expense of $1.8 million compared to $0.1 million in Q1 2021 is
included in our overall operating expenses.
iSun reported a $2.9 million net loss, or ($0.23) per share in
the first quarter of 2022, compared to a $3.1 million loss, or
($0.41) per share over the same period 2021.
EBITDA for the quarter was approaching break-even, with a loss
of ($0.12) million compared to a loss of ($1.4) million the year
prior. We are encouraged by these results, particularly with the
variability of the seasonal impact to our installation schedules
during Q1.
Our residential division generated revenue of approximately $6.7
million during Q1 and grew customer demand to $26.2 million with
execution anticipated over three to five months.
Our commercial and industrial division generated revenue of
approximately $6.9 million during Q1 and grew contracted backlog to
$102.1 million with execution anticipated over twelve to eighteen
months.
Our utility division generated revenue of approximately $1.5
million during Q1 and has 550MW of utility scale projects and 120MW
of commercial and industrial scale projects under development. As
these projects transition to the installation phase, they will be
added to the respective backlogs.
Outlook The multi-segment
strategy positioned us to meet the evolving demand as well as
diversifying our revenue stream which insulates us from challenges
created by economic and political uncertainty impacting the global
energy market. We are insulated but not immune from industry
dynamics and based on the current environment, we are adjusting our
2022 revenue guidance to $125 million. We will continue to monitor
these developments closely and evaluate the impacts they will have
on each of our divisions and our forecast. We remain committed to
our mission and returning the Company to profitability and cash
flow positive in 2022.
First Quarter 2022 Conference Call
Details iSun will host a conference call on Tuesday, May
17th, at 8:30 AM EDT to review the Company’s financial results,
discuss recent events, and conduct a question-and-answer session.
Participants can access the live conference call via telephone at
877-545-0523, using Conference ID #728525. An archived audio replay
will be available through May 31, 2022, at 877-481-4010, Conference
ID# 45602.
Interested parties may also listen to the live audio of the
conference call by visiting the Investor Relations section of the
iSun website at investors.isunenergy.com. To listen to a live
broadcast, go to the site at least 15 minutes prior to the
scheduled start time to register, download, and install any
necessary audio software.
iSun, Inc. Condensed
Consolidated Balance Sheets (Unaudited) March 31, 2022 and December
31, 2021 (In thousands)
March 31, 2022
(Unaudited)
December 31, 2021
Assets
Current Assets:
Cash
$
1,344
$
2,242
Accounts receivable, net of allowance
13,754
14,337
Costs and estimated earnings in excess of
billings
3,527
4,004
Inventory
2,950
2,480
Other current assets
1,304
1,071
Total current assets
22,879
24,134
Property and equipment:
Building and improvements
336
967
Vehicles
2,942
2,908
Tools and equipment
2,405
3,127
Software
234
234
Construction in process
14
3
Solar arrays
6,708
6,859
12,639
14,098
Less accumulated depreciation
(3,341
)
(3,056
)
9,298
11,042
Other Assets:
Captive insurance investment
270
270
Goodwill
36,907
36,907
Intangible assets
17,651
18,907
Investments
12,320
12,420
Other assets
48
48
67,196
68,552
Total assets
$
99,373
$
103,728
Liabilities and Stockholders’
Equity
Current Liabilities:
Accounts payable
$
9,712
$
13,188
Accrued expenses
6,256
7,628
Billings in excess of costs and estimated
earnings on uncompleted contracts
3,221
2,389
Line of credit
5,433
4,468
Current portion of deferred
compensation
31
31
Current portion of long-term debt
562
6,694
Total current liabilities
25,215
34,398
Long-term liabilities:
Deferred compensation, net of current
portion
21
28
Deferred tax liability
-
772
Warrant liability
85
148
Other liabilities
3,328
3,375
Long-term debt, net of current portion
2,127
5,149
Total liabilities
30,776
43,870
Commitments and Contingencies (Note 8
)
Stockholders’ equity:
Common stock – 0.0001 par value 49,000,000
shares authorized, 13,739,154 and 11,825,878 issued and outstanding
as of March 31, 2022 and December 31, 2021, respectively
1
1
Additional paid-in capital
72,507
60,863
Accumulated deficit
(3,911
)
(1,006
)
Total Stockholders’ equity
68,597
59,858
Total liabilities and stockholders’
equity
$
99,373
$
103,728
The accompanying notes are an integral part of
these unaudited condensed consolidated financial statements.
iSun, Inc. Condensed
Consolidated Statements of Operations (Unaudited) For the Three
Months Ended March 31, 2022 and 2021 (In thousands, except number
of shares)
Three Months ended
March 31,
2022
2021
Earned revenue
$
15,087
$
7,261
Cost of earned revenue
11,917
7,142
Gross profit
3,170
119
Warehousing and other operating
expenses
607
184
General and administrative expenses
7,022
1,465
Stock based compensation – general and
administrative
1,244
1,071
Total operating expenses
8,873
2,719
Operating loss
(5,703
)
(2,601
)
Other income (expenses)
Gain on forgiveness of PPP Loan
2,592
-
Change in fair value of the warrant
liability
63
(262
)
Interest expense, net
(629
)
(36
)
Loss before income taxes
(3,677
)
(2,899
)
(Benefit) provision for income taxes
(772
)
214
Net loss
(2,905
)
(3,113
)
Net income applicable to preferred
shareholders
-
(70
)
Net loss available to shares of common
stockholders
$
(2,905
)
$
(3,183
)
Net loss per share of Common Stock - Basic
and diluted
$
(0.23
)
$
(0.41
)
Weighted average shares of Common Stock -
Basic and diluted
12,646,446
7,695,279
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:
(In thousands, except number of
shares)
Three months ended March 31,
2022
2021
Net income (loss)
$
(2,905
)
$
(3,183
)
Depreciation and amortization
1,752
136
Interest expense
629
36
Stock based compensation
1,244
1,071
Change in fair value of warrant
liability
(63
)
262
Income tax (benefit)
(772
)
214
EBITDA
(115
)
-
Other costs(1)
10
-
Adjusted EBITDA
(105
)
(1,394
)
Weighted Average shares outstanding
12,646,446
7,695,279
Adjusted EPS
(0.01
)
(0.18
)
About iSun Inc. Since 1972,
iSun has accelerated the adoption of proven, life-improving
innovations in electrification technology. iSun has been the
trusted electrical contractor to Fortune 500 companies for decades
and has installed clean rooms, fiber optic cables, flight
simulators, and over 400 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20220516006025/en/
IR Contact: Tyler Barnes IR@isunenergy.com 802-289-8141
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