Vermont Business Magazine iSun, Inc (NASDAQ:ISUN), a leading solar energy and clean mobility infrastructure company based in Williston with 50-years of construction experience in solar, electrical and data services, today announced results for the third quarter of 2021.
Highlights
- YTD quarter revenue of $18.3 million, up 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 for the quarter compared to $0.2 million for the same period in 2020; YTD gross profit of $0.8 million compared to $0.6 million for the same period in 2020.
- Margins returned to pre-Covid levels as iSun completed projects affected by increasing raw material prices.
- Third quarter 2021 backlog of $80.7 million, exclusive of the $9.6 million C&I backlog obtained through the acquisition of SunCommon.
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 Jeffrey Peck, Chairman and Chief Executive Officer of iSun. “By 2035, 100% of all new vehicles offered in North America by Ford, General Motors, and Mercedes will be electric or hybrid. Currently, the average EV requires 30 kilowatt-hours to travel 100 miles. This is the same amount of electricity an average American home uses each day. Imagine the implications for two-car household families: Overnight, their household electricity demand could double. Because such increases are coming as we retreat from coal and other fossil fuels, we’ve no choice but to rely on renewable energy sources to meet increased demand.
“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 $6.7 million representing a $1.7 million or 34% increase over the same period in the prior year. Year to date 2021 revenue was $18.3 million, representing a 56% increase over the same period in the prior year. Revenue growth was driven by the continued execution of our Commercial and Industrial project backlog, the addition of a new Professional Services revenue stream and continued deployment of our EV Infrastructure.
Gross profit in the second quarter was $1.3 million compared to $0.3 million during the third quarter in the prior year. Year to date gross profit was $0.8 million compared to $0.6 million during the same period in the prior year. iSun experienced industry wide material and component price increases as well as labor shortages that negatively impacted project margins through the first half of the year. During the third quarter, iSun’s margins returned to normal pre-COVID levels as they began executing contracts entered during 2021. Margins were further strengthened by:
- 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 September 30, 2021, was $80.7 million. This does not include the additional C&I backlog of $9.6 million obtained with the acquisition of SunCommon. Additionally, SunCommon provides iSun with residential customer orders of $22.1 million.
iSun’s balance sheet remained strong at the end of Q3 2021. iSun’s cash position of $27.5 million on September 30, 2021, was strengthen by strong cash collections, evidenced by a decrease in Accounts Receivable from year end, and a revenue increase of $6.6 million over the year prior. iSun’s total debt increased to $13.9 million at the end of the third quarter 2021. Total debt includes $2.0 million on iSun’s revolving line of credit used to support working capital, $1.9 million of long-term debt that is supported by recurring revenue generated by owned solar assets, and $10 million in long-term debt that supports the SunCommon acquisition, which closed in the fourth quarter of this year.
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 Thursday, November 18, 2021, prior to market opening.
Third Quarter 2021 Conference Call Details
iSun will host a conference call on Tuesday, November 16, 2021, at 8:30 AM EST to review the Company’s financial results, discuss recent events, and conduct a question-and-answer session. Participants can access the live conference call via telephone at 888-506-0062, using Conference ID #820676. An archived audio replay will be available through Tuesday, November 30th, 2021, at 877-481-4010, Conference ID# 43390.
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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iSun, Inc. |
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Condensed Consolidated Balance Sheets |
||||||
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September 30, 2021 (Unaudited) and December 31, 2020 |
||||||
|
|
September 30, 2021 |
December 31, 2020 |
||||
|
Assets |
|
|||||
|
Current Assets: |
|
|||||
|
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 |
|
|||||
|
Current Liabilities: |
|
|||||
|
Accounts payable, includes bank overdraft of $0 and $1,246,437 on September 30, 2021 and December 31, 2020, respectively |
$ |
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) |
||||||
|
Stockholders’ equity: |
|
|||||
|
Preferred stock – 0.0001 par value 1,000,000 shares authorized, 0 and 200,000 issued and outstanding at September 30, 2021 and December 31, 2020, respectively |
- |
20 |
||||
|
Common stock – 0.0001 par value 49,000,000 shares authorized, 9,103,433 and 5,313,268 issued and outstanding as of September 30, 2021 and December 31, 2020, respectively |
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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iSun, Inc. |
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Condensed Consolidated Statements of Operations (Unaudited) |
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For the three and six Months Ended September 30, 2021 and 2020 |
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Three Months ended |
Nine Months ended |
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|
September 30, |
September 30, |
|||||||||||||||
|
2021 |
2020 |
2021 |
2020 |
|||||||||||||
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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 |
||||||||||||
|
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 |
) |
||||||||
|
Net loss |
(655,821 |
) |
(1,334,850 |
) |
(5,093,579 |
) |
(2,979,192 |
) |
||||||||
|
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 |
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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 |
Nine months ended |
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2021 |
2020 |
2021 |
2020 |
|||||||||||||
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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 |
) |
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About iSun, Inc.
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.
Source: WILLISTON, Vt.--(BUSINESS WIRE)--iSun, Inc 11.15.2021