Solar Integrated Roofing Corp. Reports Record Second Quarter 2022 Financial Results, Growing Revenue 746% to $66 Million

Rhea-AI Summary

Solar Integrated Roofing Corp. (OTC: SIRC) reported impressive second-quarter results, achieving revenue of $66.3 million, a 746% increase from the previous year. Net income surged to $18.9 million, reversing a net loss from the same quarter in 2021. The company expanded its market reach and secured significant contracts, including a 5-year agreement with the U.S. General Services Administration for EV charging installations. With its transition to a fully reporting company, SIRC aims to uplist to a more prominent exchange, further enhancing growth prospects.

Positive

• Revenue increased 746% to $66.3 million in Q2 2022.
• Net income rose to $18.9 million, compared to a net loss of $3.3 million in Q2 2021.
• Gross profit surged to $30.5 million, representing 46% of revenues.
• Secured a 5-year blanket purchase agreement with the U.S. General Services Administration for EV charging installations.

Negative

• Operating expenses rose to $9.4 million, up from $5.1 million in Q2 2021.
• Cash and cash equivalents decreased to $0.5 million from $1.1 million as of December 31, 2021.

Net Income Grew to $18.9 Million; Transition to Fully Reporting Company Accelerating Uplisting Strategy

HENDERSON, Nev., Aug. 23, 2022 (GLOBE NEWSWIRE) -- Solar Integrated Roofing Corp. (OTC: SIRC), an integrated, single-source solar power, roofing systems installation and EV charging company, today reported its financial and operational results for the second quarter ended June 30, 2022.

Key Second Quarter 2022 and Subsequent Highlights

• Revenue in the second quarter ended June 30, 2022 increased 746% to $66.3 million, as compared $7.8 million in the second quarter of 2021.
• Net income in the second quarter of 2022 was $18.9 million, or $0.04 per basic and diluted common share, as compared $(3.3) million, or $(0.01) per basic and diluted common share, in the second quarter of 2021.
• Awarded 5-year blanket purchase agreement with the U.S. General Services Administration as part of the $5 billion in federal funds allocated to EV charging installations in the Biden Administration's Infrastructure Bill.
• Secured agreement with AED to assist with the development and financing of turnkey alternative energy systems – comprised of solar, battery storage and EV charging solutions – for multiple existing hotel locations along with several planned future hotels.
• Introduced an innovative low-income solar financing product to non-profit commercial entities through partnership with Renewable Energy Products Manufacturing ("REPM"), unlocking new commercial scale opportunities in a niche with minimal competition.
• Filed audited financial statements for the year ended December 31, 2021 and transitioned to a more traditional December 31 fiscal year, positioning the Company to accelerate its uplisting strategy.
• Participated in leading investor conferences nationally including the Planet MicroCap Showcase and LD Micro Invitational XII.
  

Management Commentary

"The second quarter of 2022 was marked by a strong cadence of continued execution – highlighted not only by record revenue and profitability, but the introduction of new partners and innovative financing products,” said David Massey, Chief Executive Officer of Solar Integrated Roofing Corp. “Our robust revenue growth has the potential to be much greater, constrained only by capital. Our recent successes have positioned us to achieve at least $225 million in revenue this year alone – with significant additional backlog and potential to expand beyond that figure – representing incredible momentum and laying the foundation for profitability with minimized dilution for years to come.

“With the completion of our audited financials, a transition to a more traditional December 31 fiscal year and continued efforts towards becoming a fully reporting company, we have now prepared the foundation for shareholder-friendly future capital formation and execution on our uplisting strategy – further spurring growth. We expect a future NASDAQ listing to bring additional liquidity and broaden our shareholder base through an enhanced profile within the investment community.

“Our partnership with REPM has allowed us to introduce an exciting new financing products to help non-profit customers install and realize the benefits of solar with no upfronts costs, and no credit threshold or income verification needed to qualify. We see additional opportunities for comparable financing products in the residential space as well. Financing products such as these have the potential to create a win-win situation for our customers and our shareholders by expanding the opportunity to install solar with groups that have historically been challenged to do so.

"Looking ahead to second half of 2022, are well positioned for sustained operational execution and year-over-year revenue growth and profitability. We are assembling the team needed to take the SIRC family of companies to the next level, forming a truly national organization with the ability to scale. I look forward to reporting on exciting milestones in the months ahead as we strive to create sustainable, long-term value for our shareholders,” concluded Massey.

Financial Results for the Second Quarter Ended June 30, 2022

Revenue in the second quarter of 2022 increased 746% to $66.3 million, as compared to $7.8 million in the second quarter of 2021. The increase was driven by the Company entering into new markets and engaging in larger-scale commercial projects.

Gross profit increased3,434% to $30.5 million, or 46% of revenues, in the second quarter of 2022, as compared $0.86 million, or 11% of total revenues, in the second quarter of 2021.

Operating expenses in the second quarter of 2022 totaled $9.4 million, as compared to $5.1 million in the second quarter of 2021. The increase was mainly attributable to increased operational scale, reflecting a larger national organization.

Net income for the second quarter of 2022 grew to $18.9 million, or $0.04 per basic and diluted common share, as compared to a net loss of $3.3 million, or $(0.01) per basic and diluted common share, in the second quarter of 2021.

Cash and cash equivalents totaled $0.5 million as of June 30, 2022, as compared to $1.1 million as of December 31, 2021.

About Solar Integrated Roofing Corp.

Solar Integrated Roofing Corp. (OTC:SIRC), is an integrated, single-source solar power, roofing systems installation and EV charging company specializing in commercial and residential properties throughout the United States. The Company serves communities by delivering the best experience through constant innovation & legacy-focused leadership. The Company's broad array of solutions include sales and installation of solar energy systems, battery backup and electric vehicle (EV) charging stations to roofing, HVAC and related electrical contracting work. For more information, please visit the Company's website at www.solarintegratedroofing.com.

Forward-Looking Statements

Any statements made in this press release which are not historical facts contain certain forward-looking statements; as such term is defined in the Private Security Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update the information contained in any forward-looking statement. This press release shall not be deemed a general solicitation.

Investor Relations Contact:
Lucas A. Zimmerman
Director
MZ North America
Main: 949-259-4987
SIRC@mzgroup.us
www.mzgroup.us

FAQ

What was Solar Integrated Roofing's revenue for Q2 2022?

Solar Integrated Roofing reported a revenue of $66.3 million for the second quarter of 2022.

How much did Solar Integrated Roofing's net income grow in Q2 2022?

The net income for Solar Integrated Roofing grew to $18.9 million in Q2 2022, compared to a net loss of $3.3 million in Q2 2021.

What is the significance of the U.S. General Services Administration contract for SIRC?

The contract represents a 5-year blanket purchase agreement for EV charging installations, contributing to SIRC's growth strategy.

What are the future growth prospects for Solar Integrated Roofing?

SIRC expects to achieve at least $225 million in revenue for the year and aims to uplist to a larger exchange, enhancing liquidity and investor interest.