iSun Inc. Reports Third Quarter 2021 Results
iSun, Inc. (NASDAQ:ISUN) reported a significant 56% increase in year-to-date revenue, reaching $18.3 million for Q3 2021, compared to the previous year. The third quarter revenue alone was $6.7 million, a 34% rise. Gross profit improved to $1.3 million from $0.2 million year-over-year. The company's backlog stands at $80.7 million, excluding $9.6 million from the acquisition of SunCommon. iSun aims to capitalize on increasing electricity demand, especially with the rise of electric vehicles, and anticipates consistent margins and improved cash flow moving forward.
- Year-to-date revenue of $18.3 million, up 56% year-over-year.
- Q3 2021 revenue of $6.7 million, a 34% increase over the same quarter last year.
- Gross profit of $1.3 million for Q3, compared to $0.2 million in Q3 2020.
- Backlog of $80.7 million, improving company outlook.
- Strong cash position at $27.5 million, aided by cash collections.
- Total debt increased to $13.9 million, up from prior levels.
- Operating loss of $1.6 million in Q3 2021, reflecting continued challenges.
Highlights
-
YTD quarter revenue of
$18.3 million 56% year-over-year, driven by execution against a robust Commercial and Industrial project backlog, the addition of a new Development and Professional Services revenue stream, and continued deployment of EV infrastructure. -
Gross profit of
$1.3 million $0.2 million $0.8 million $0.6 million - Margins returned to pre-Covid levels as iSun completed projects affected by increasing raw material prices.
-
Third quarter 2021 backlog of
$80.7 million $9.6 million
Management Commentary
“The recent trend towards the electrification of everything – particularly automobiles - suggests that we are about to experience a massive increase in electricity demand,” said
“iSun – with its combination of capabilities and experience – is uniquely capable of accelerating the transition from dirty to clean energy required to meet our nation’s increasing energy demands,” stated Peck. “With our recent acquisition of SunCommon, we’ve built a platform capable of serving all customer segments of the marketplace and advancing our mission to accelerate the adoption of solar.”
Third Quarter Results
iSun reported third quarter 2021 revenue of
Gross profit in the second quarter was
- revenues generated by owned solar assets during the peak production months of the third quarter, and:
- iSun’s new Professional Services revenue stream which is not impacted by material pricing or labor constraints.
iSun is confident that they have moved past the challenges of the first half of the year and anticipate more consistent margins and improved cash flow through the end of the year.
iSun’s Commercial and Industrial project backlog on
iSun’s balance sheet remained strong at the end of Q3 2021. iSun’s cash position of
Outlook
The growth of iSun’s C&I project backlog combined with strong residential customer demand, ongoing Utility project development and the government’s recent investments in EV infrastructure provides an optimistic outlook for iSun’s 2022 revenue growth. iSun will provide 2022 Revenue Guidance on
Third Quarter 2021 Conference Call Details
iSun will host a conference call on
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.
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Condensed Consolidated Balance Sheets |
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Assets |
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Current Assets: |
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Cash |
$ |
27,460,078 |
$ |
699,154 |
||
Accounts receivable, net of allowance |
|
5,528,020 |
|
6,215,957 |
||
Inventory |
|
1,534,859 |
|
- |
||
Costs and estimated earnings in excess of billings |
|
3,350,251 |
|
1,354,602 |
||
Other current assets |
|
292,276 |
|
214,963 |
||
Total current assets |
|
38,165,484 |
|
8,484,676 |
||
|
|
|
|
|
||
Property and Equipment, net of accumulated depreciation |
|
6,371,351 |
|
6,119,800 |
||
Captive insurance investment |
|
233,487 |
|
198,105 |
||
Intangible assets, net of amortization |
|
3,856,681 |
|
- |
||
Investments |
7,520,496 |
|
4,820,496 |
|||
Deferred tax asset |
|
448,914 |
|
- |
||
|
|
18,430,929 |
|
11,138,401 |
||
Total assets |
$ |
56,596,413 |
$ |
19,623,077 |
||
Liabilities and Stockholders’ Equity |
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Current Liabilities: |
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|
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||
Accounts payable, includes bank overdraft of |
$ |
3,407,320 |
$ |
4,086,173 |
||
Accrued expenses |
|
102,351 |
|
172,021 |
||
Billings in excess of costs and estimated earnings on uncompleted contracts |
|
1,652,106 |
|
1,140,125 |
||
Due to stockholders |
|
- |
|
24,315 |
||
Line of credit |
|
2,080,671 |
|
2,482,127 |
||
Current portion of deferred compensation |
|
28,656 |
|
28,656 |
||
Current portion of long-term debt |
|
316,875 |
|
308,394 |
||
Total current liabilities |
|
7,587,979 |
|
8,241,811 |
||
Long-term liabilities: |
|
|
|
|
||
Deferred compensation, net of current portion |
|
39,280 |
|
62,531 |
||
Deferred tax liability |
|
- |
|
610,558 |
||
Warrant liability |
|
180,600 |
|
1,124,411 |
||
Long-term debt, net of current portion |
|
11,624,939 |
|
1,701,495 |
||
Total liabilities |
|
19,432,798 |
|
11,740,806 |
||
Commitments and Contingencies (Note 9) |
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Stockholders’ equity: |
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Preferred stock – 0.0001 par value 1,000,000 shares authorized, 0 and 200,000 issued and outstanding at |
|
- |
|
20 |
||
Common stock – 0.0001 par value 49,000,000 shares authorized, 9,103,433 and 5,313,268 issued and outstanding as of |
|
910 |
|
531 |
||
Additional paid-in capital |
|
37,021,586 |
|
2,577,359 |
||
Retained earnings |
|
141,119 |
|
5,304,361 |
||
Total Stockholders’ equity |
|
37,163,615 |
|
7,882,271 |
||
Total liabilities and stockholders’ equity |
$ |
56,596,413 |
$ |
19,623,077 |
||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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Condensed Consolidated Statements of Operations (Unaudited) |
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For the three and six Months Ended |
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Three Months ended |
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Nine Months ended |
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2021 |
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2020
|
|
|
2021 |
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2020
|
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|
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|
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|
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|
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|
||||
Earned revenue |
|
$ |
6,678,975 |
|
|
$ |
4,966,026 |
|
|
$ |
18,292,937 |
|
|
$ |
11,720,932 |
|
Cost of earned revenue |
|
|
5,376,238 |
|
|
|
4,728,328 |
|
|
|
17,506,004 |
|
|
|
11,162,439 |
|
Gross profit |
|
|
1,302,737 |
|
|
237,698 |
|
|
|
786,933 |
|
|
558,493 |
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Warehousing and other operating expenses |
|
|
350,400 |
|
|
|
180,471 |
|
|
|
782,759 |
|
|
|
556,927 |
|
General and administrative expenses |
|
|
2,357,516 |
|
|
|
709,353 |
|
|
|
5,477,439 |
|
|
|
2,190,763 |
|
Stock based compensation – general and administrative |
|
|
218,155 |
|
|
|
- |
|
|
|
1,554,539 |
|
|
|
- |
|
Total operating expenses |
|
|
2,926,071 |
|
|
|
889,824 |
|
|
|
7,814,737 |
|
|
|
2,747,690 |
|
Operating loss |
|
|
(1,623,334 |
) |
|
|
(652,126 |
) |
|
|
(7,027,804 |
) |
|
|
(2,189,197 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Other income (expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain/ (loss) on sale |
|
|
62,963 |
|
|
|
- |
|
|
|
62,963 |
|
|
|
- |
|
Change in fair value of the warrant liability |
|
|
126,305 |
|
|
|
(819,170 |
) |
|
|
943,811 |
|
|
|
(1,201,850 |
) |
Interest expense, net |
|
|
(42,360 |
) |
|
|
(72,554 |
) |
|
|
(129,721 |
) |
|
|
(218,730 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
(1,476,426 |
) |
|
|
(1,543,850 |
) |
|
|
(6,150,751 |
) |
|
|
(3,609,777 |
) |
(Benefit) provision for income taxes |
|
|
(820,605 |
) |
|
|
(209,000 |
) |
|
|
(1,057,172 |
) |
|
|
(630,585 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net loss |
|
|
(655,821 |
) |
|
|
(1,334,850 |
) |
|
|
(5,093,579 |
) |
|
|
(2,979,192 |
) |
|
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Net income applicable to preferred shareholders |
|
|
- |
|
|
|
(175,556 |
) |
|
|
(69,663 |
) |
|
|
(175,556 |
) |
Net loss available to shares of common stockholders |
|
$ |
(655,821 |
) |
|
$ |
(1,510,406 |
) |
|
$ |
(5,163,242 |
) |
|
$ |
(3,154,748 |
) |
|
|
|
|
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Net loss per share of Common Stock - Basic and diluted |
|
$ |
(0.07 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.60 |
) |
|
$ |
(0.56 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of Common Stock - Basic and diluted |
|
|
9,103,433 |
|
|
|
5,298,159 |
|
|
|
8,658,405 |
|
|
|
5,298,159 |
|
The accompanying notes are an integral part of these condensed 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:
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Three months ended
|
|
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Nine months ended
|
|
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|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
Net income (loss) |
|
$ |
(655,821 |
) |
|
$ |
(1,334,850 |
) |
|
$ |
(5,093,579 |
) |
|
$ |
(2,979,192 |
) |
Depreciation and amortization |
|
|
270,601 |
|
|
|
138,164 |
|
|
|
575,754 |
|
|
|
448,188 |
|
Interest expense |
|
|
42,360 |
|
|
|
72,554 |
|
|
|
129,721 |
|
|
|
218,730 |
|
Stock based compensation |
|
|
218,155 |
|
|
- |
|
|
|
1,554,539 |
|
|
|
- |
|
|
Change in fair value of warrant liability |
|
|
(126,305 |
) |
|
|
819,170 |
|
|
|
(943,811 |
) |
|
|
1,201,850 |
|
Income tax (benefit) |
|
|
(820,605 |
) |
|
|
(209,000 |
) |
|
|
(1,057,172 |
) |
|
|
(630,585 |
) |
Adjusted EBITDA |
|
|
(1,071,615 |
) |
|
|
(513,962 |
) |
|
|
(4,834,548 |
) |
|
|
(1,741,009 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average shares outstanding |
|
|
9,103,433 |
|
|
|
5,298,159 |
|
|
|
8,658,405 |
|
|
|
5,298,159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS |
|
|
(0.12 |
) |
|
|
(0.10 |
) |
|
|
(0.56 |
) |
|
|
(0.33 |
) |
About
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 has provided solar EPC services across residential, commercial & industrial, 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
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/20211115006249/en/
IR:
IR@isunenergy.com
802-289-8141
Source:
FAQ
What were iSun's revenue figures for Q3 2021?
How much did iSun's year-to-date revenue increase?
What is iSun's current backlog amount?
What was iSun's gross profit for Q3 2021?
How has iSun's debt changed in Q3 2021?
