Q2 2023 revenues of $25 million, a 51.8%
increase from Q2 2022, driven by higher demand and strong execution
of company’s strategy
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 final financial results
for the second quarter of 2023 ended June 30, 2023.
Quarterly Highlights
- Q2 2023 revenue of $25.0 million, up 51.8% from Q222, as
continued commercial and industrial execution drives
growth
- YTD revenue of $42.4 million, up 34.2% over first half of
2022
- Gross profit of $5.9 million, up 58.2% from Q222
- Gross margin of 23.7%, up 90 basis points from 22.8% in
2022’s second quarter, as expected synergies taking hold
- Awarded $8.0 million in new solar and EV infrastructure
contracts in Q2 2023, with a total of $40.0 million in first half
of 2023
- Continuing successful execution of growth strategy,
leveraging tailwinds
Management Commentary
“We are continuing to benefit from positive momentum, especially
in our commercial and industrial segment, as we generated 51.8%
higher revenue in the 2023 second quarter compared to last year.
Our team is focused on executing our growth strategy, leveraging
the positive tailwinds from climate legislation and higher customer
interest in alternative energy solutions,” said Jeffrey Peck, Chief
Executive Officer of iSun. “I am very pleased by our continued
success in achieving new contract wins, as we added $8 million in
the second quarter, for a total of $40 million in the first half of
this year, a record pace for iSun. Our improved synergies as we
scale, along with higher productivity, enabled us to increase our
margins by 90 basis points in the second quarter to 23.7%. We have
increased our labor utilization this year, as part of our ongoing
efficiency efforts that included the consolidation of our
commercial and industrial divisions, which offsets the continuing
challenges we experience from supply chain constraints, even as
they are lessening compared to last year. 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.”
Second Quarter and Year to Date
Results
iSun reported second quarter 2023 revenue of $25.0 million, up
51.8% from $16.5 million in the same period in 2022. YTD revenue
was $42.4 million, representing a $10.8 million or 34.2% increase
over the same period in 2022. Revenue growth was driven primarily
by the fulfillment of commercial and industrial projects across
multiple states receiving notice to proceed as well as our
residential backlog; total backlog was $161.8 million as of June
30, 2023. iSun also generated new future demand by adding $8
million in new business during the second quarter and a total of
$40 million in the first half of 2023, primarily driven by strong
demand for commercial and industrial services as well as for
focused project origination and design services for partners on
large national carport projects.
Divisional highlights as of June 30, 2023, include:
- Residential division generated revenue of $9.3 and $16.2
million in the second quarter and YTD respectively. Customer orders
of approximately $13.1 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 $15.6 and $25.9 million
in the second quarter and YTD respectively; the division has a
contracted backlog of approximately $140.7 million expected to be
completed within 10-18 months.
- Utility and development division generated revenue of $0.1 and
$0.3 million in the second quarter and YTD respectively. 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 second quarter was $5.9 million, up 58.2%
from $3.8 million in the second quarter of 2022. Gross margin for
the quarter was 23.7%, up 90 basis points from 22.8% in the same
period in 2022. YTD gross profit was $9.5 million, up 37% compared
to $6.9 million during the same period in 2022. YTD gross margin
was 22.4%, up 50 basis points compared to 21.9% during the same
period in 2022. Margin is expected to continue to expand in the
second half of 2023 consistent with scaling of operations and
planned increase in residential implementations, as part of the
strategy to expand gross margin each year as synergies among the
company’s segments grow.
The operating loss in the second quarter was ($1.8) million, a
68.8% improvement compared to a loss of ($5.6) million in 2022’s
second quarter, primarily reflecting the higher revenues and lower
operating expenses as part of the company’s efficiency focus. YTD
operating income was a loss of ($4.4) million, a 61.1% reduction
compared to a loss of ($11.3) million during the same period in
2022. Non-cash depreciation and amortization expenses were $0.8
million in the second quarter of 2023, compared to $1.8 million in
prior year period. YTD non-cash depreciation and amortization
expenses were $1.5 million compared to $3.5 million in the same
period in 2022.
iSun reported a net loss of ($2.5) million, or ($0.13) per
share, in the second quarter of 2023, compared to a net loss of
($5.7) million, or ($0.40) per share, in the same period in 2022.
YTD net loss was ($5.5) million or ($0.31) per share compared to a
net loss of ($8.6) million or ($0.64) per share in the same period
in 2022.
Adjusted EBITDA for the second quarter of 2023 was a loss of
($0.6) million or ($0.03) per share, compared to a loss of ($3.2)
million or ($0.23) per share in 2022’s second quarter. YTD Adjusted
EBITDA was a loss of ($1.8) million or ($0.10) per share compared
to a loss of ($3.4) million or ($0.25) per share in the same period
in 2022.
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
positive results from its focus on efficiency so far this year,
iSun also anticipates continued gross margin expansion and adjusted
EBITDA profitability by the end of 2023.
Added Mr. Peck, “We are making excellent progress in tracking
against the targets we set for iSun’s performance this year, as we
execute on our strategy and fulfill our commitments to investors.
We remain confident that our capabilities effectively address the
needs of more customers and position us to accelerate our growth in
the evolving alternative energy sector. Our success in winning
significant contracts with existing and new customers is based upon
our platform approach that delivers a suite of services to meet the
needs of diverse customers. This year, we are also benefiting from
the expertise of our team in executing efficiently on our backlog
to address 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 enable us to generate steadily higher revenue
and reach operating profitability.”
Second Quarter 2023 Conference Call
Details
iSun will host a conference call today, Thursday, August 10, 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 1-888-506-0062 (domestic) or
1-973-528-0011 (international), using conference ID 246871 or via
webcast in the Investor Relations section of the iSun website at
investors.isunenergy.com. An audio replay will be available through
Thursday, August 24, 2023, and can be accessed by dialing
1-877-481-4010 (domestic) or 1-919-882-2331 (international), using
conference code 48846. A webcast of the conference call will be
available beginning approximately one hour after the call is
completed at investors.isunenergy.com.
iSun, Inc.
Condensed Consolidated Balance
Sheets as of
June 30, 2023 (Unaudited) and
December 31, 2022
(In thousands, except number of
shares)
June 30, 2023
December 31, 2022
Assets
Current Assets:
Cash
$
6,105
$
5,455
Accounts receivable, net of allowance
11,238
8,783
Contract assets
8,369
7,324
Inventory
2,119
2,536
Other current assets
1,577
1,625
Total current assets
29,408
25,723
Other Assets:
Property and equipment, net of accumulated
depreciation
8,108
8,440
Operating lease right-of-use assets,
net
6,638
6,960
Captive insurance investment
270
270
Intangible assets, net
13,238
14,038
Investments
12,020
12,020
Other assets
30
30
Total other assets
40,304
41,758
Total assets
$
69,712
$
67,481
Liabilities and Stockholders’
Equity
Current Liabilities:
Accounts payable
$
16,986
$
12,941
Accrued expenses
3,632
5,868
Operating lease liability
601
588
Contract liabilities
8,020
5,419
Current portion of deferred
compensation
15
31
Current portion of long-term debt
5,152
5,374
Total current liabilities
34,406
30,221
Long-term liabilities:
Warrant liability
-
10
Operating lease liability, net of current
portion
6,405
6,711
Other liabilities
2,832
3,026
Long-term debt, net of current portion
5,508
8,226
Total liabilities
49,151
48,194
Contingencies (Note 1l)
Stockholders’ equity:
Preferred stock - 0.0001 par value
1,000,000 shares authorized, 0 issued and outstanding as of June
30, 2023 and December 31, 2022
-
-
Common stock – 0.0001 par value 49,000,000
shares authorized, 23,435,489 and 15,083,109 issued and outstanding
as of June 30, 2023, and December 31, 2022, respectively
2
2
Additional paid-in capital
80,852
74,070
Accumulated deficit
(60,293
)
(54,785
)
Total Stockholders’ equity
20,561
19,287
Total liabilities and stockholders’
equity
$
69,712
$
67,481
The accompanying notes are an integral part of
these consolidated financial statements.
iSun, Inc.
Condensed Consolidated Statements
of Operations
for the Three and Six Months
Ended June 30, 2023, and 2022 (Unaudited)
(In thousands, except number of
shares and per share data)
Three Months ended
Six Months ended
June 30,
June 30,
2023
2022
2023
2022
Earned revenue
$
25,006
$
16,476
$
42,365
$
31,563
Cost of earned revenue
19,069
12,723
32,879
24,640
Income before operating expenses
5,937
3,753
9,486
6,923
Warehousing and other operating
expenses
220
1,017
451
1,367
General and administrative expenses
6,334
5,982
11,183
11,509
Stock based compensation – general and
administrative
373
591
746
1,835
Depreciation and amortization
762
1,778
1,512
3,530
Total operating expenses
7,689
9,368
13,892
18,241
Operating loss
(1,752
)
(5,615
)
(4,406
)
(11,318
)
Other income (expenses):
Gain on forgiveness of PPP Loan
-
-
-
2,592
Change in fair value of the warrant
liability
4
28
10
91
Loss on debt conversion
(303
)
-
(303
)
Interest expense, net
(448
)
(87
)
(797
)
(716
)
Other income (expense)
(747
)
(59
)
(1,090
)
(1,967
)
Loss before income taxes
(2,499
)
(5,674
)
(5,496
)
(9,351
)
Tax expense (benefit)
12
7
12
(765
)
Net loss
$
(2,511
)
$
(5,681
)
$
(5,508
)
$
(8,586
)
Net loss per share of Common Stock - Basic
and diluted
$
(0.13
)
$
(0.40
)
$
(0.31
)
$
(0.64
)
Weighted average shares of Common Stock -
Basic and diluted
19,685,045
14,070,117
17,829,459
13,364,352
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 June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Net income (loss)
$
(2,511
)
$
(5,681
)
$
(5,508
)
$
(8,586
)
Depreciation and amortization
762
1,778
1,512
3,530
Interest expense
448
87
797
716
Stock based compensation
373
591
746
1,835
Change in fair value of warrant
liability
(4
)
(28
)
(10
)
(91
)
Loss on conversion
303
-
303
-
Income tax (benefit)
12
7
12
(765
)
EBITDA
(617
)
(3,246
)
(2,148
)
(3,361
)
Other costs(1)
350
-
350
10
Adjusted EBITDA
(267
)
(3,246
)
(1,798
)
(3,351
)
Weighted Average shares outstanding
19,685,045
14,070,117
17,829,459
13,364,352
Adjusted EPS
(0.01
)
(0.23
)
(0.10
)
(0.25
)
(1)
Other costs consist of one-time legal
expenses related to the settlement of a lawsuit.
(2)
As the forgiveness of the PPP loan is
considered a one-time expense, the Company considered including the
forgiveness of $0 million and $2.6 million for the six months ended
June 30, 2023 and 2022, respectively, as a reconciling item. The
Company excluded the forgiveness on the basis that had it not been
awarded a PPP loan, the Company would have terminated, furlough or
reduced its workforce during the COVID-19 pandemic shutdown.
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: Investor Relations IR@isunenergy.com
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