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.
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version on businesswire.com: https://www.businesswire.com/news/home/20221115005827/en/
For more information: Investor Relations
IR@isunenergy.com
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