iSun reports 1Q 2022 results, doubles revenues

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iSun reports 1Q 2022 results, doubles revenues

Tue, 05/17/2022 - 11:34am -- tim
Q1 revenues more than double over Q1 2021 while approaching breakeven EBITDA
Vermont Business Magazine iSun, Inc (NASDAQ: ISUN) today announced results for the first quarter of 2022. Williston-based iSun is a leading solar energy and clean mobility infrastructure company with 50-years of experience accelerating the adoption of innovative electrical technologies, 

Highlights

  • Revenue of $15.1 million in the first quarter, up 107.8% over the first quarter in 2021
  • Gross profit of $3.2 million in the first quarter compared to $0.1 million for the same period in 2021.
  • Gross margins of 21.0% in the first quarter, marks third consecutive quarter of margin improvement
  • Approaching break-even EBITDA despite seasonal impact to installations
  • Backlog grew to $128.3 million adding approximately $41.2 million in new customer demand and contracts during the quarter

Shares were down over 5 percent Tuesday morning to $2.63. The 52-week range is $2.28-$13.98 and the market cap is $36.9 million.

Management Commentary
“We continue to see exceptional growth with the doubling of our revenue in Q1 over the prior year,” said Jeffrey Peck, Chairman and Chief Executive Officer of iSun. We expect to see this growth continue into Q2 as we transition out of the seasonality of the Northeast. Our customer demand continues to accelerate evident by the growth in our overall backlog totaling $128.3 million with new demand of $41.2 million generated in the quarter. iSun is well positioned in this rapidly evolving energy market to accelerate the adoption of solar and meet the demand as it occurs in each segment.”

First Quarter Results
iSun reported first quarter 2022 revenue of $15.1 million representing a $7.8 million or 107.8% increase over the same period in 2021. Revenue growth was driven by the continued fulfillment of residential consumer demand and execution of our commercial and industrial backlog. While we continued to execute against our existing backlog, we also generated new demand and added $41.2 million in new business during Q1.

Gross profit in the first quarter was $3.2 million compared to $0.1 million during the 1st quarter 2021. Consolidated gross margin for the quarter was 21.0%, compared to 1.6% over the same period 2021. The margin improvement represents the third consecutive quarter in which our margin has improved. As we grow synergies and efficiencies among our segments, the strengthening of our margin is expected to continue.

Consolidated operating income was a loss of $5.7 million compared to a loss of $2.6 million over the same period 2021. We acquired several intangible and fixed assets in 2021 that began to amortize in 2022. Our non-cash depreciation and amortization expense of $1.8 million compared to $0.1 million in Q1 2021 is included in our overall operating expenses.

iSun reported a $2.9 million net loss, or ($0.23) per share in the first quarter of 2022, compared to a $3.1 million loss, or ($0.41) per share over the same period 2021.

EBITDA for the quarter was approaching break-even, with a loss of ($0.12) million compared to a loss of ($1.4) million the year prior. We are encouraged by these results, particularly with the variability of the seasonal impact to our installation schedules during Q1.

Our residential division generated revenue of approximately $6.7 million during Q1 and grew customer demand to $26.2 million with execution anticipated over three to five months.

Our commercial and industrial division generated revenue of approximately $6.9 million during Q1 and grew contracted backlog to $102.1 million with execution anticipated over twelve to eighteen months.

Our utility division generated revenue of approximately $1.5 million during Q1 and has 550MW of utility scale projects and 120MW of commercial and industrial scale projects under development. As these projects transition to the installation phase, they will be added to the respective backlogs.

Outlook
The multi-segment strategy positioned us to meet the evolving demand as well as diversifying our revenue stream which insulates us from challenges created by economic and political uncertainty impacting the global energy market. We are insulated but not immune from industry dynamics and based on the current environment, we are adjusting our 2022 revenue guidance to $125 million. We will continue to monitor these developments closely and evaluate the impacts they will have on each of our divisions and our forecast. We remain committed to our mission and returning the Company to profitability and cash flow positive in 2022.

First Quarter 2022 Conference Call Details
iSun will host a conference call on Tuesday, May 17th, at 8:30 AM EDT 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 877-545-0523, using Conference ID #728525. An archived audio replay will be available through May 31, 2022, at 877-481-4010, Conference ID# 45602.

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.

iSun, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
March 31, 2022 and December 31, 2021
(In thousands)

             

 

 

March 31, 2022
(Unaudited)

 

 

December 31,
2021

 

Assets

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash

 

$

1,344

 

 

$

2,242

 

Accounts receivable, net of allowance

 

 

13,754

 

 

 

14,337

 

Costs and estimated earnings in excess of billings

 

 

3,527

 

 

 

4,004

 

Inventory

 

 

2,950

 

 

 

2,480

 

Other current assets

 

 

1,304

 

 

 

1,071

 

Total current assets

 

 

22,879

 

 

 

24,134

 

Property and equipment:

 

 

 

 

 

 

 

 

Building and improvements

 

 

336

 

 

 

967

 

Vehicles

 

 

2,942

 

 

 

2,908

 

Tools and equipment

 

 

2,405

 

 

 

3,127

 

Software

 

 

234

 

 

 

234

 

Construction in process

 

 

14

 

 

 

3

 

Solar arrays

 

 

6,708

 

 

 

6,859

 

 

 

 

12,639

 

 

 

14,098

 

Less accumulated depreciation

 

 

(3,341

)

 

 

(3,056

)

 

 

 

9,298

 

 

 

11,042

 

Other Assets:

 

 

 

 

 

 

 

 

Captive insurance investment

 

 

270

 

 

 

270

 

Goodwill

 

 

36,907

 

 

 

36,907

 

Intangible assets

 

 

17,651

 

 

 

18,907

 

Investments

 

 

12,320

 

 

 

12,420

 

Other assets

 

 

48

 

 

 

48

 

 

 

 

67,196

 

 

 

68,552

 

Total assets

 

$

99,373

 

 

$

103,728

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

9,712

 

 

$

13,188

 

Accrued expenses

 

 

6,256

 

 

 

7,628

 

Billings in excess of costs and estimated earnings on uncompleted contracts

 

 

3,221

 

 

 

2,389

 

Line of credit

 

 

5,433

 

 

 

4,468

 

Current portion of deferred compensation

 

 

31

 

 

 

31

 

Current portion of long-term debt

 

 

562

 

 

 

6,694

 

Total current liabilities

 

 

25,215

 

 

 

34,398

 

Long-term liabilities:

 

 

 

 

 

 

 

 

Deferred compensation, net of current portion

 

 

21

 

 

 

28

 

Deferred tax liability

 

 

-

 

 

 

772

 

Warrant liability

 

 

85

 

 

 

148

 

Other liabilities

 

 

3,328

 

 

 

3,375

 

Long-term debt, net of current portion

 

 

2,127

 

 

 

5,149

 

Total liabilities

 

 

30,776

 

 

 

43,870

 

Commitments and Contingencies (Note 8 )

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock – 0.0001 par value 49,000,000 shares authorized, 13,739,154 and 11,825,878 issued and outstanding as of March 31, 2022 and December 31, 2021, respectively

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

72,507

 

 

 

60,863

 

Accumulated deficit

 

 

(3,911

)

 

 

(1,006

)

Total Stockholders’ equity

 

 

68,597

 

 

 

59,858

 

Total liabilities and stockholders’ equity

 

$

99,373

 

 

$

103,728

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

iSun, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
For the Three Months Ended March 31, 2022 and 2021
(In thousands, except number of shares)

       

 

 

Three Months ended

 

 

 

March 31,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

Earned revenue

 

$

15,087

 

 

$

7,261

 

Cost of earned revenue

 

 

11,917

 

 

 

7,142

 

Gross profit

 

 

3,170

 

 

 

119

 

 

 

 

 

 

 

 

 

 

Warehousing and other operating expenses

 

 

607

 

 

 

184

 

General and administrative expenses

 

 

7,022

 

 

 

1,465

 

Stock based compensation – general and administrative

 

 

1,244

 

 

 

1,071

 

Total operating expenses

 

 

8,873

 

 

 

2,719

 

Operating loss

 

 

(5,703

)

 

 

(2,601

)

 

 

 

 

 

 

 

 

 

Other income (expenses)

 

 

 

 

 

 

 

 

Gain on forgiveness of PPP Loan

 

 

2,592

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Change in fair value of the warrant liability

 

 

63

 

 

 

(262

)

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(629

)

 

 

(36

)

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(3,677

)

 

 

(2,899

)

(Benefit) provision for income taxes

 

 

(772

)

 

 

214

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(2,905

)

 

 

(3,113

)

 

 

 

 

 

 

 

 

 

Net income applicable to preferred shareholders

 

 

-

 

 

 

(70

)

Net loss available to shares of common stockholders

 

$

(2,905

)

 

$

(3,183

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share of Common Stock - Basic and diluted

 

$

(0.23

)

 

$

(0.41

)

 

 

 

 

 

 

 

 

 

Weighted average shares of Common Stock - Basic and diluted

 

 

12,646,446

 

 

 

7,695,279

 

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:

(In thousands, except number of shares)

 

Three months ended
March 31,

 

 

 

2022

 

 

2021

 

Net income (loss)

 

$

(2,905

)

 

$

(3,183

)

Depreciation and amortization

 

 

1,752

 

 

 

136

 

Interest expense

 

 

629

 

 

 

36

 

Stock based compensation

 

 

1,244

 

 

 

1,071

 

Change in fair value of warrant liability

 

 

(63

)

 

 

262

 

Income tax (benefit)

 

 

(772

)

 

 

214

 

EBITDA

 

 

(115

)

 

 

-

 

Other costs(1)

 

 

10

 

 

 

-

 

Adjusted EBITDA

 

 

(105

)

 

 

(1,394

)

 

 

 

 

 

 

 

 

 

Weighted Average shares outstanding

 

 

12,646,446

 

 

 

7,695,279

 

 

 

 

 

 

 

 

 

 

Adjusted EPS

 

 

(0.01

)

 

 

(0.18

)

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 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.

May 16, 2022 WILLISTON, Vt.--(BUSINESS WIRE)--iSun, Inc