iSun Inc. Reports Third Quarter 2022 Results
iSun reported $19.0 million in revenue for Q3 2022, a 185% increase year-over-year and a 15.5% increase from Q2. Gross profit reached $3.6 million, significantly up from $1.3 million in Q3 2021. The company secured $50.2 million in new contracts, raising its backlog to a record $179.1 million. Although operating loss increased to ($4.9) million, improved cash collections led to a new $25 million credit facility. iSun anticipates full-year revenue between $70-75 million, marking a 60-65% growth from 2021.
- Revenue increased by 185% year-over-year to $19.0 million.
- New contracts worth $50.2 million added, increasing backlog to $179.1 million.
- Gross profit rose to $3.6 million, up from $1.3 million a year prior.
- Secured a new $25 million credit facility to support growth.
- Operating loss increased to $4.9 million from a loss of $1.6 million in Q3 2021.
- Net loss was $4.9 million, up from a loss of $0.7 million year-over-year.
- Continued supply chain constraints and project delays may push revenue recognition to 2023.
Revenues of
Quarterly Highlights
-
Revenue of
$19.0 million 185% from the third quarter of 2021 -
Gross profit of
$3.6 million $1.3 million -
Awarded
$9.3 million Maine -
Awarded
$3.0 million Maryland , expanding presence in Mid-Atlantic, one of largest energy markets in US -
Signs new
$25 million
Management Commentary
“Our revenue nearly tripled in the third quarter, up to
Third Quarter and Year-to-Date Results
iSun reported third quarter 2022 revenue of
Divisional highlights include:
-
Residential division generated revenue of
$10.2 million $24.3 million $25.8 million -
Commercial division generated revenue of
$1.1 million $3.4 million $12.6 million -
Industrial division generated revenue of
$5.9 million $19.1 million $140.7 million -
Utility and development division generated revenue of
$1.8 million $3.8 million
Gross profit in the third quarter was
Operating income in the third quarter was a loss of
iSun reported a net loss of
Adjusted EBITDA for the third quarter of 2022 was a loss of
Subsequent to the third quarter, iSun secured a new debt facility of
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
Added
Third Quarter 2022 Conference Call Details
iSun will host a conference call today,
Consolidated Balance Sheets
(In thousands, except number of shares)
|
2022 |
|
|
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 |
|
|
|
|
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 |
|
|
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.
Condensed Consolidated Statements of Operations (Unaudited)
For the Three and Nine Months Ended
(In thousands, except number of shares)
|
|
Three Months ended |
|
|
Nine Months ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
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
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
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 |
About
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
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/20221115005827/en/
For more information:
Investor Relations
IR@isunenergy.com
Source:
FAQ
What were iSun's Q3 2022 revenues?
How much did iSun's revenue grow compared to Q3 2021?
What is the current backlog for iSun as of Q3 2022?
What is iSun's expected revenue for full-year 2022?
What was iSun's net loss in Q3 2022?
