Strong demand propels 2nd quarter revenue to
increase 278% over the same period in 2021
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 second
quarter of 2022.
Highlights
- Revenue of $16.5 million in the second quarter, up 278% over
the second quarter in 2021
- YTD revenue of $31.6 million representing 172% growth over
the same period in 2021
- Backlog grew to $147.9 million adding approximately $35.7
million in new customer demand and contracts during the
quarter
- Gross profit of $3.8 million in the second quarter compared
to ($0.6) million for the same period in 2021.
- YTD gross profit of $6.9 million compared to ($0.5) million
for the same period in 2021
- Gross margins of 22.8% in the second quarter, marks fourth
consecutive quarter of margin improvement
- YTD gross margin of 21.9% compared to (4.4%) for the same
period in 2021
Management Commentary
“In the second quarter of 2022, we continued to execute on our
strategic plan initiated in 2021,” said Jeffrey Peck, Chief
Executive Officer of iSun. “iSun made several strategic investments
to transform the company and position it for the future. These
strategic investments were designed to diversify our revenue mix,
and secure project pipelines that iSun develops, constructs, and
holds a minority ownership in. We are just beginning to see the
benefits of these strategic initiatives and investments. In the
second quarter of 2022, we tripled our revenue over the same period
in 2021. Customer demand continued to accelerate, with new demand
of $35.7 million generated in the quarter, increasing our backlog
to $147.9 million. Additionally, iSun has approximately 1GW of
projects in development. The recent legislation to combat climate
change increases the value of our pipeline and provides an
operating environment that will further accelerate our growth. Our
preparation, pipeline, and this legislation has me more optimistic
about our prospects than ever.”
Second Quarter and Year-to-Date
Results
iSun reported second quarter 2022 revenue of $16.5 million
representing a $12.1 million or 278% increase over the same period
in 2021. YTD revenue was $31.6 million representing a $19.9 million
or 172% increase over the same period in 2022. 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 by adding $35.7 million in new business
during the 2nd quarter. By division, our:
- Residential division generated revenue of $8.9 and $14.1
million in the second quarter and YTD, respectively. Customer
orders are approximately $30.7 million and expected to be completed
within three to six months.
- Commercial division generated revenue of $1.1 and $2.5 million
in the second quarter and YTD, respectively, and has a contracted
backlog of approximately $11.4 million expected to be completed
within six to eight months.
- Industrial division generated revenue of $6.0 and $12.9 million
in the second quarter and YTD, respectively, and has a contracted
backlog of approximately $105.8 million expected to be completed
within twelve to eighteen months.
- Utility division generated revenue of $0.5 and $2.1 million in
the second quarter and YTD, respectively. Our Utility division also
has 993 MW of projects currently under development with projects
achieving NTP in late 2022 and early 2023.
Gross profit in the second quarter was $3.8 million compared to
a ($0.6) million loss during the 2nd quarter 2021. Consolidated
gross margin for the quarter was 22.8%, compared to (14.6%) over
the same period in 2021. YTD gross profit was $6.9 compared to a
($0.5) million during the same period in 2021. YTD gross margin was
21.9% compared to (4.4%) during the same period in 2021. The margin
improvement represents the fourth consecutive quarter in which our
margin has improved. As we grow synergies among our segments, the
strengthening of our margin is expected to continue.
Operating income in the second quarter was a loss of ($5.6)
million compared to a loss of ($2.8) million over the same period
in 2021. YTD operating income was a loss of ($11.3) million
compared to a loss of ($5.4) million during the same period in
2021. Non-cash depreciation and amortization expenses were $1.8
million in the second quarter compared to $0.2 million in the same
period in 2022. YTD non-cash depreciation and amortization expenses
were $3.5 million compared to $0.3 million in the same period in
2021.
iSun reported a net loss of ($5.7) million, or ($0.40) per share
in the second quarter of 2022, compared to a net loss of ($1.3)
million, or ($0.15) per share over the same period in 2021. YTD was
a net loss of ($8.6) million or ($0.64) per share compared to a net
loss of ($4.4) million or ($0.53) per share in the same period in
2021.
EBITDA for the quarter was ($3.2) million or (0.23) per share
compared to ($2.4) million or ($0.26) per share in the same period
in 2021. YTD EBITDA was ($3.4) million or ($0.25) per share
compared to ($3.8) million or ($0.45) per share in the same period
in 2021.
We continue to focus our efforts on strengthening our balance
sheet to improve our cash position and liquidity ratios. Our
collections remain strong, and we have invested in inventory to
meet the needs of our growing customer backlog and mitigate supply
chain risks. We recognize the need to clean up our balance sheet
following the multiple acquisitions that were successfully closed
during 2021. We are in active conversations to secure a new debt
facility that will refinance our existing debt, properly
collateralize the assets from our investments and acquisitions, and
provide the capital necessary to continue our growth trajectory. We
anticipate closing prior to the end of the third quarter.
Outlook
iSun’s investments perfectly positions us to respond to the
increase in energy demand associated with automotive
electrification, and make iSun an indispensable partner to
consumers, businesses, industries, and utilities as they transition
to renewable energy sources. With the recent climate legislation,
we anticipate a more favorable environment for solar development
and EV infrastructure. Our breadth of capabilities and depth of
services position us to continue our growth trajectory. We now have
a platform that can deliver a full suite of services. We have
assembled a team that has the experience and expertise to execute
on our capabilities. We have tremendous demand, and a growing
customer base. We are confident that these conditions will continue
to accelerate our established year-over-year revenue growth.
Second Quarter 2022 Conference Call
Details
iSun will host a conference call on Tuesday, August 16th 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 888-506-0062,
using Conference ID #840002. An archived audio replay will be
available through Tuesday, August 30, 2022, at 877-481-4010,
Conference ID# 46361.
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.
Consolidated Balance Sheets
June 30, 2022 (Unaudited) and
December 31, 2021
(In thousands, except number of
shares)
June 30, 2022
December 31, 2021
Assets
Current Assets:
Cash
$
1,296
$
2,242
Accounts receivable, net of allowance
9,777
14,337
Costs and estimated earnings in excess of
billings
3,132
4,004
Inventory
5,458
2,480
Other current assets
1,312
1,071
Total current assets
20,975
24,134
Other Assets:
Property and equipment, net of accumulated
depreciation
9,084
11,042
Captive insurance investment
270
270
Goodwill
36,907
36,907
Intangible assets, net
16,447
18,907
Investments
12,220
12,420
Other assets
48
48
Total other assets
74,976
79,594
Total assets
$
95,951
$
103,728
Liabilities and Stockholders’
Equity
Current Liabilities:
Accounts payable
$
9,644
$
13,188
Accrued expenses
7,325
7,628
Billings in excess of costs and estimated
earnings on uncompleted contracts
3,464
2,389
Line of credit
4,754
4,468
Current portion of deferred
compensation
31
31
Current portion of long-term debt
571
6,694
Total current liabilities
25,789
34,398
Long-term liabilities:
Deferred compensation, net of current
portion
14
28
Deferred tax liability
-
772
Warrant liability
57
148
Other liabilities
2,303
3,375
Long-term debt, net of current portion
2,157
5,149
Total liabilities
30,320
43,870
Commitments and Contingencies (Note 8)
-
-
Stockholders’ equity:
Common stock – 0.0001 par value 49,000,000
shares authorized, 14,382,080 and 11,825,878 issued and outstanding
as of June 30, 2022 and December 31, 2021, respectively
1
1
Additional paid-in capital
75,222
60,863
Accumulated deficit
(9,592
)
(1,006
)
Total Stockholders’ equity
65,631
59,858
Total liabilities and stockholders’
equity
$
95,951
$
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 Six Months
Ended June 30, 2022 and 2021
(In thousands, except number of
shares)
Three Months ended
Six Months ended
June 30,
June 30,
2022
2021
2022
2021
Earned revenue
$
16,476
$
4,353
$
31,563
$
11,614
Cost of earned revenue
12,723
4,988
24,640
12,130
Gross profit
3,753
(635
)
6,923
(516
)
Warehousing and other operating
expenses
1,017
80
1,367
127
General and administrative expenses
5,982
1,655
11,509
3,120
Stock based compensation – general and
administrative
591
265
1,835
1,336
Depreciation and amortization
1,778
169
3,530
305
Total operating expenses
9,368
2,169
18,241
4,888
Operating loss
(5,615
)
(2,804
)
(11,318
)
(5,404
)
Other income (expenses)
Gain on forgiveness of PPP Loan
-
-
2,592
-
Change in fair value of the warrant
liability
28
1,079
91
818
Interest expense, net
(87
)
(50
)
(716
)
(88
)
Loss before income taxes
(5,674
)
(1,775
)
(9,351
)
(4,674
)
(Benefit) provision for income taxes
7
(451
)
(765
)
(236
)
Net loss
(5,681
)
(1,324
)
(8,586
)
(4,438
)
Preferred shareholders’ dividend
-
-
-
(70
)
Net loss available to shares of common
stockholders
$
(5,681
)
$
(1,324
)
$
(8,586
)
$
(4,508
)
Net loss per share of Common Stock - Basic
and diluted
$
(0.40
)
$
(0.15
)
$
(0.64
)
$
(0.53
)
Weighted average shares of Common Stock -
Basic and diluted
14,070,117
9,058,483
13,364,352
8,382,930
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 June 30,
Six Months Ended June 30,
2022
2021
2022
2021
Net income (loss)
$
(5,681
)
$
(1,324
)
$
(8,586
)
$
(4,437
)
Depreciation and amortization
1,778
169
3,530
305
Interest expense
87
50
716
88
Stock based compensation
591
(1,079
)
1,835
1,336
Change in fair value of warrant
liability
(28
)
265
(91
)
(818
)
Income tax (benefit)
7
(451
)
(765
)
(237
)
EBITDA
(3,246
)
(2,370
)
(3,361
)
(3,763
)
Other costs(1)
-
-
10
-
Adjusted EBITDA
(3,246
)
(2,370
)
(3,351
)
(3,763
)
Weighted Average shares outstanding
14,070,117
9,058,483
13,364,352
8,382,930
Adjusted EPS
(0.23
)
(0.26
)
(0.25
)
(0.45
)
(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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220815005672/en/
IR Contact: Tyler Barnes IR@isunenergy.com 802-289-8141
iSun (NASDAQ:ISUN)
Historical Stock Chart
Von Mai 2023 bis Jun 2023
iSun (NASDAQ:ISUN)
Historical Stock Chart
Von Jun 2022 bis Jun 2023
