Q1 2023 revenues of $17.4 million, a 15%
increase from Q1 2022, driven by increased demand and strong
execution
Reaffirms expectations for total revenue of
$95-100 million in 2023, a 24-31% increase over 2022
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
first quarter 2023.
Quarterly Highlights
- Revenue of $17.4 million, up 15% from Q122, as commercial
and industrial execution drives growth
- Gross profit of $3.5 million, up 12% from Q122
- Gross margin of 20.5%, down slightly from 21% in 2022’s
first quarter
- Operating expenses reduced by $2.7 million with focus on
efficiency
- Awarded $32.0 million in new solar and EV infrastructure
contracts in 2023
Management Commentary
“Our momentum as we begin 2023 is strong, as evidenced by our
15% increase in revenues for the first quarter driven by commercial
and industrial execution, as well as our $32.0 million in new
contract wins,” said Jeffrey Peck, Chief Executive Officer of iSun.
“Our business development teams are engaging with more potential
customers, and their efforts are gaining us opportunities across
the alternative energy spectrum. We are already seeing the results
of our focus on higher efficiency this year, as our operating
expenses declined by $2.7 million from last year’s first quarter.
All these efforts provide us the confidence to reaffirm our annual
revenue guidance for 2023, as we work diligently to implement and
complete our many projects.”
First Quarter Results
iSun reported first quarter 2023 revenue of $17.4 million, up
15% from $15.1 million in the same period in 2022. Revenue growth
for the first quarter of 2023 was driven primarily by the
fulfillment of our residential backlog and multiple commercial and
industrial projects receiving notice to proceed; total backlog was
$178.8 million as of March 31, 2023. iSun also generated new future
demand by adding $32.0 million in new business during the first
quarter, primarily driven by strong demand in commercial and
industrial services as well as for project origination and design
services.
Divisional highlights as of March 31, 2023, include:
- Residential division generated revenue of $6.9 million in the
first quarter. Customer orders of approximately $17.9 million are
expected to be completed within three to five months.
- The commercial and industrial division, which were consolidated
as of January 1, 2023, generated revenue of $10.3 million in the
first quarter and the division has a contracted backlog of
approximately $152.9 million expected to be completed within 10-18
months.
- Utility and development division generated revenue of $0.2
million in the first quarter. The Utility division has a contracted
backlog of approximately $8.0 million and 1.6 GW of projects
currently under development expected to achieve NTP in 2023 and
early 2024.
Gross profit in the first quarter was $3.5 million up 12% from
$3.2 million in the first quarter of 2022. Gross margin for the
quarter was 20.5%, down 50 basis points from 21.0% in the same
period in 2022. Margin is expected to recover in Q2 consistent with
the planned increase in residential implementations. As synergies
among the company’s segments grow, gross margin is expected to
continue to strengthen each year.
The operating loss in the first quarter was ($2.7) million, a
54% improvement compared to a loss of ($5.7) million in 2022’s
first quarter, primarily reflecting the higher revenues and sharply
lower operating expenses as part of the company’s efficiency focus.
Non-cash depreciation and amortization expenses were $0.8 million
in the first quarter of 2023, compared to $1.8 million in prior
year period.
iSun reported a net loss of ($3.0) million, or ($0.19) per
share, in the first quarter of 2023, compared to a net loss of
($2.9) million, or ($0.23) per share, in the same period in 2022.
Adjusted EBITDA for the first quarter of 2023 was a loss of $1.5
million or $0.19 per share, compared to a loss of $0.1 million or
$0.01 per share in 2022’s first quarter.
Outlook
iSun’s continuing success in winning new business, from solar
projects to EV infrastructure and project origination and
development services, along with its sizable and growing backlog,
is expected to enable the company to produce total revenue of
$95-100 million for the full year 2023, representing a 24-31%
increase over total revenues of $76.5 million in 2022. With the
early, positive results from its focus on efficiency, iSun also
anticipates continued gross margin expansion and adjusted EBITDA
profitability by the end of 2023.
Added Mr. Peck, “We remain confident that our full portfolio of
capabilities positions us increasingly well to accelerate our
growth in the evolving alternative energy sector, as demonstrated
by our continued success in winning significant contracts with
existing and new customers. Our platform delivers a much-needed
suite of services that meets the needs of a variety of customers
and our team brings the expertise to execute efficiently on our
customers’ needs. Now that our country’s energy policy has been
established for the next 10 years through the IRA legislation
passed last summer, we expect those macroeconomic factors to help
us scale our operations significantly in the next few years, and
thus generate steadily higher revenue and reach operating
profitability.”
First Quarter 2023 Conference Call
Details
iSun will host a conference call today, (day), May 15, at 8:30
AM ET to review the Company’s financial results and discuss its
operations and outlook. Participants can access the live conference
call via telephone at 1-877-545-0523 (domestic) or 1-973-528-0016
(international), using conference ID 256159 or via webcast in the
Investor Relations section of the iSun website at
investors.isunenergy.com. An audio replay will be available through
Monday, May 29, 2023, and can be accessed by dialing 1-877-481-4010
(domestic) or 1-919-882-2331 (international), using conference code
48438. 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
March 31, 2023 and 2022
(In thousands, except number of shares)
March 31, 2023
December 31, 2022
Assets
Current Assets:
Cash
$
7,195
$
5,455
Accounts receivable, net of allowance
9,816
8,783
Contract assets
5,879
7,324
Inventory
2,748
2,536
Other current assets
1,787
1,625
Total current assets
27,425
25,723
Other Assets:
Property and equipment, net of accumulated
depreciation
8,148
8,440
Operating lease right-of-use assets,
net
6,796
6,960
Captive insurance investment
270
270
Intangible assets, net
13,638
14,038
Investments
12,020
12,020
Other assets
30
30
Total other assets
32,754
33,318
Total assets
$
68,327
$
67,481
Liabilities and Stockholders’
Equity
Current Liabilities:
Accounts payable
$
14,943
$
12,941
Accrued expenses
4,202
5,868
Operating lease liability
591
588
Contract liabilities
7,347
5,419
Current portion of deferred
compensation
23
31
Current portion of long-term debt
6,321
5,374
Total current liabilities
33,427
30,221
Long-term liabilities:
Warrant liability
4
10
Operating lease liability, net of current
portion
6,559
6,711
Other liabilities
3,010
3,026
Long-term debt, net of current portion
6,752
8,226
Total liabilities
49,752
48,194
Commitments and Contingencies (Note 8)
Stockholders’ equity:
Preferred stock - 0.0001 par value
1,000,000 shares authorized, 0 issued and outstanding as of March
31, 2023 and December 31, 2022
-
-
Common stock – 0.0001 par value 49,000,000
shares authorized, 16,814,260 and 15,083,109 issued and outstanding
as of March 31, 2023, and December 31, 2022, respectively
2
2
Additional paid-in capital
76,355
74,070
Accumulated deficit
(57,782
)
(54,785
)
Total Stockholders’ equity
18,575
19,287
Total liabilities and stockholders’
equity
$
68,327
$
67,481
The accompanying notes are an integral part of
these consolidated financial statements.
iSun, Inc.
Consolidated Statements of Operations
For the Quarters Ended March 31, 2023 and
2022
(In thousands, except number of shares)
Three Months ended
March 31,
2023
2022
Earned revenue
$
17,359
$
15,087
Cost of earned revenue
13,810
11,917
Income before operating expenses
3,549
3,170
Warehousing and other operating
expenses
231
607
General and administrative expenses
4,849
5,270
Stock based compensation – general and
administrative
373
1,244
Depreciation and amortization
750
1,752
Total operating expenses
6,203
8,873
Operating loss
(2,654
)
(5,703
)
Other income (expenses)
Gain on forgiveness of PPP Loan
-
2,592
Change in fair value of the warrant
liability
6
63
Interest expense, net
(349
)
(629
)
Loss before income taxes
(2,997
)
(3,677
)
(Benefit) for income taxes
-
(772
)
Net loss
$
(2,997
)
$
(2,905
)
Net loss per share of Common Stock - Basic
and diluted
$
(0.19
)
$
(0.23
)
Weighted average shares of Common Stock -
Basic and diluted
15,964,430
12,646,446
The accompanying notes are an integral part of
these 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 March 31,
2023
2022
Net income (loss)
$
(2,997
)
$
(2,905
)
Depreciation and amortization
750
1,752
Interest expense
349
629
Stock based compensation
373
1,244
Change in fair value of warrant
liability
(6
)
(63
)
Income tax (benefit)
-
(772
)
EBITDA
(1,531
)
(115
)
Other costs(1)
-
10
Adjusted EBITDA
$
(1,531
)
$
(105
)
Weighted Average shares outstanding
15,964,430
12,646,446
Adjusted EBITDA per share
(0.10
)
(0.01
)
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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For more information contact: Investor Relations
IR@isunenergy.com
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