ISUN - iSun Inc. Reports Second Quarter 2022 Results
Strong demand propels 2 nd quarter revenue to increase 278% over the same period in 2021
iSun, Inc. (NASDAQ: ISUN) (the “Company,” or “iSun”), a leading solar energy and clean mobility infrastructure company with 50-years of experience accelerating the adoption of innovative electrical technologies, today announced results for the second quarter of 2022.
Highlights
- Revenue of $16.5 million in the second quarter, up 278% over the second quarter in 2021
- YTD revenue of $31.6 million representing 172% growth over the same period in 2021
- Backlog grew to $147.9 million adding approximately $35.7 million in new customer demand and contracts during the quarter
- Gross profit of $3.8 million in the second quarter compared to ($0.6) million for the same period in 2021.
- YTD gross profit of $6.9 million compared to ($0.5) million for the same period in 2021
- Gross margins of 22.8% in the second quarter, marks fourth consecutive quarter of margin improvement
- YTD gross margin of 21.9% compared to (4.4%) for the same period in 2021
Management Commentary
“In the second quarter of 2022, we continued to execute on our strategic plan initiated in 2021,” said Jeffrey Peck, Chief Executive Officer of iSun. “iSun made several strategic investments to transform the company and position it for the future. These strategic investments were designed to diversify our revenue mix, and secure project pipelines that iSun develops, constructs, and holds a minority ownership in. We are just beginning to see the benefits of these strategic initiatives and investments. In the second quarter of 2022, we tripled our revenue over the same period in 2021. Customer demand continued to accelerate, with new demand of $35.7 million generated in the quarter, increasing our backlog to $147.9 million. Additionally, iSun has approximately 1GW of projects in development. The recent legislation to combat climate change increases the value of our pipeline and provides an operating environment that will further accelerate our growth. Our preparation, pipeline, and this legislation has me more optimistic about our prospects than ever.”
Second Quarter and Year-to-Date Results
iSun reported second quarter 2022 revenue of $16.5 million representing a $12.1 million or 278% increase over the same period in 2021. YTD revenue was $31.6 million representing a $19.9 million or 172% increase over the same period in 2022. 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 by adding $35.7 million in new business during the 2nd quarter. By division, our:
- Residential division generated revenue of $8.9 and $14.1 million in the second quarter and YTD, respectively. Customer orders are approximately $30.7 million and expected to be completed within three to six months.
- Commercial division generated revenue of $1.1 and $2.5 million in the second quarter and YTD, respectively, and has a contracted backlog of approximately $11.4 million expected to be completed within six to eight months.
- Industrial division generated revenue of $6.0 and $12.9 million in the second quarter and YTD, respectively, and has a contracted backlog of approximately $105.8 million expected to be completed within twelve to eighteen months.
- Utility division generated revenue of $0.5 and $2.1 million in the second quarter and YTD, respectively. Our Utility division also has 993 MW of projects currently under development with projects achieving NTP in late 2022 and early 2023.
Gross profit in the second quarter was $3.8 million compared to a ($0.6) million loss during the 2nd quarter 2021. Consolidated gross margin for the quarter was 22.8%, compared to (14.6%) over the same period in 2021. YTD gross profit was $6.9 compared to a ($0.5) million during the same period in 2021. YTD gross margin was 21.9% compared to (4.4%) during the same period in 2021. The margin improvement represents the fourth consecutive quarter in which our margin has improved. As we grow synergies among our segments, the strengthening of our margin is expected to continue.
Operating income in the second quarter was a loss of ($5.6) million compared to a loss of ($2.8) million over the same period in 2021. YTD operating income was a loss of ($11.3) million compared to a loss of ($5.4) million during the same period in 2021. Non-cash depreciation and amortization expenses were $1.8 million in the second quarter compared to $0.2 million in the same period in 2022. YTD non-cash depreciation and amortization expenses were $3.5 million compared to $0.3 million in the same period in 2021.
iSun reported a net loss of ($5.7) million, or ($0.40) per share in the second quarter of 2022, compared to a net loss of ($1.3) million, or ($0.15) per share over the same period in 2021. YTD was a net loss of ($8.6) million or ($0.64) per share compared to a net loss of ($4.4) million or ($0.53) per share in the same period in 2021.
EBITDA for the quarter was ($3.2) million or (0.23) per share compared to ($2.4) million or ($0.26) per share in the same period in 2021. YTD EBITDA was ($3.4) million or ($0.25) per share compared to ($3.8) million or ($0.45) per share in the same period in 2021.
We continue to focus our efforts on strengthening our balance sheet to improve our cash position and liquidity ratios. Our collections remain strong, and we have invested in inventory to meet the needs of our growing customer backlog and mitigate supply chain risks. We recognize the need to clean up our balance sheet following the multiple acquisitions that were successfully closed during 2021. We are in active conversations to secure a new debt facility that will refinance our existing debt, properly collateralize the assets from our investments and acquisitions, and provide the capital necessary to continue our growth trajectory. We anticipate closing prior to the end of the third quarter.
Outlook
iSun’s investments perfectly positions us to respond to the increase in energy demand associated with automotive electrification, and make iSun an indispensable partner to consumers, businesses, industries, and utilities as they transition to renewable energy sources. With the recent climate legislation, we anticipate a more favorable environment for solar development and EV infrastructure. Our breadth of capabilities and depth of services position us to continue our growth trajectory. We now have a platform that can deliver a full suite of services. We have assembled a team that has the experience and expertise to execute on our capabilities. We have tremendous demand, and a growing customer base. We are confident that these conditions will continue to accelerate our established year-over-year revenue growth.
Second Quarter 2022 Conference Call Details
iSun will host a conference call on Tuesday, August 16th 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 888-506-0062, using Conference ID #840002. An archived audio replay will be available through Tuesday, August 30, 2022, at 877-481-4010, Conference ID# 46361.
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. |
| Consolidated Balance Sheets |
| June 30, 2022 (Unaudited) and December 31, 2021 |
| (In thousands, except number of shares) |
|
|
|
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| June 30, 2022 |
|
|
|
|
| December 31, 2021 |
|
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
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|
|
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| Current Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash |
|
|
| $ |
| 1,296 |
|
|
|
|
| $ |
| 2,242 |
|
|
| Accounts receivable, net of allowance |
|
|
|
|
| 9,777 |
|
|
|
|
|
|
| 14,337 |
|
|
| Costs and estimated earnings in excess of billings |
|
|
|
|
| 3,132 |
|
|
|
|
|
|
| 4,004 |
|
|
| Inventory |
|
|
|
|
| 5,458 |
|
|
|
|
|
|
| 2,480 |
|
|
| Other current assets |
|
|
|
|
| 1,312 |
|
|
|
|
|
|
| 1,071 |
|
|
| Total current assets |
|
|
|
|
| 20,975 |
|
|
|
|
|
|
| 24,134 |
|
|
| Other Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property and equipment, net of accumulated depreciation |
|
|
|
|
| 9,084 |
|
|
|
|
|
|
| 11,042 |
|
|
| Captive insurance investment |
|
|
|
|
| 270 |
|
|
|
|
|
|
| 270 |
|
|
| Goodwill |
|
|
|
|
| 36,907 |
|
|
|
|
|
|
| 36,907 |
|
|
| Intangible assets, net |
|
|
|
|
| 16,447 |
|
|
|
|
|
|
| 18,907 |
|
|
| Investments |
|
|
|
|
| 12,220 |
|
|
|
|
|
|
| 12,420 |
|
|
| Other assets |
|
|
|
|
| 48 |
|
|
|
|
|
|
| 48 |
|
|
| Total other assets |
|
|
|
|
| 74,976 |
|
|
|
|
|
|
| 79,594 |
|
|
| Total assets |
|
|
| $ |
| 95,951 |
|
|
|
|
| $ |
| 103,728 |
|
|
| Liabilities and Stockholders’ Equity |
|
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|
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|
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| Current Liabilities: |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accounts payable |
|
|
| $ |
| 9,644 |
|
|
|
|
| $ |
| 13,188 |
|
|
| Accrued expenses |
|
|
|
|
| 7,325 |
|
|
|
|
|
|
| 7,628 |
|
|
| Billings in excess of costs and estimated earnings on uncompleted contracts |
|
|
|
|
| 3,464 |
|
|
|
|
|
|
| 2,389 |
|
|
| Line of credit |
|
|
|
|
| 4,754 |
|
|
|
|
|
|
| 4,468 |
|
|
| Current portion of deferred compensation |
|
|
|
|
| 31 |
|
|
|
|
|
|
| 31 |
|
|
| Current portion of long-term debt |
|
|
|
|
| 571 |
|
|
|
|
|
|
| 6,694 |
|
|
| Total current liabilities |
|
|
|
|
| 25,789 |
|
|
|
|
|
|
| 34,398 |
|
|
| Long-term liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred compensation, net of current portion |
|
|
|
|
| 14 |
|
|
|
|
|
|
| 28 |
|
|
| Deferred tax liability |
|
|
|
|
| - |
|
|
|
|
|
|
| 772 |
|
|
| Warrant liability |
|
|
|
|
| 57 |
|
|
|
|
|
|
| 148 |
|
|
| Other liabilities |
|
|
|
|
| 2,303 |
|
|
|
|
|
|
| 3,375 |
|
|
| Long-term debt, net of current portion |
|
|
|
|
| 2,157 |
|
|
|
|
|
|
| 5,149 |
|
|
| Total liabilities |
|
|
|
|
| 30,320 |
|
|
|
|
|
|
| 43,870 |
|
|
| Commitments and Contingencies (Note 8) |
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
| Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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| Common stock – 0.0001 par value 49,000,000 shares authorized, 14,382,080 and 11,825,878 issued and outstanding as of June 30, 2022 and December 31, 2021, respectively |
|
|
|
|
| 1 |
|
|
|
|
|
|
| 1 |
|
|
| Additional paid-in capital |
|
|
|
|
| 75,222 |
|
|
|
|
|
|
| 60,863 |
|
|
| Accumulated deficit |
|
|
|
|
| (9,592 |
| ) |
|
|
|
|
| (1,006 |
| ) |
| Total Stockholders’ equity |
|
|
|
|
| 65,631 |
|
|
|
|
|
|
| 59,858 |
|
|
| Total liabilities and stockholders’ equity |
|
|
| $ |
| 95,951 |
|
|
|
|
| $ |
| 103,728 |
|
|
| The accompanying notes are an integral part of these unaudited consolidated financial statements. |
| iSun, Inc. |
| Condensed Consolidated Statements of Operations (Unaudited) |
| For the Three and Six Months Ended June 30, 2022 and 2021 |
| (In thousands, except number of shares) |
|
|
|
|
| Three Months ended |
|
|
|
|
| Six Months ended |
|
|
|
|
|
|
| June 30, |
|
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|
|
| June 30, |
|
|
|
|
|
|
| 2022 |
|
|
|
|
| 2021 |
|
|
|
|
| 2022 |
|
|
|
|
| 2021 |
|
|
| Earned revenue |
|
|
| $ |
| 16,476 |
|
|
|
|
| $ |
| 4,353 |
|
|
|
|
| $ |
| 31,563 |
|
|
|
|
| $ |
| 11,614 |
|
|
| Cost of earned revenue |
|
|
|
|
| 12,723 |
|
|
|
|
|
|
| 4,988 |
|
|
|
|
|
|
| 24,640 |
|
|
|
|
|
|
| 12,130 |
|
|
| Gross profit |
|
|
|
|
| 3,753 |
|
|
|
|
|
|
| (635 |
| ) |
|
|
|
|
| 6,923 |
|
|
|
|
|
|
| (516 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Warehousing and other operating expenses |
|
|
|
|
| 1,017 |
|
|
|
|
|
|
| 80 |
|
|
|
|
|
|
| 1,367 |
|
|
|
|
|
|
| 127 |
|
|
| General and administrative expenses |
|
|
|
|
| 5,982 |
|
|
|
|
|
|
| 1,655 |
|
|
|
|
|
|
| 11,509 |
|
|
|
|
|
|
| 3,120 |
|
|
| Stock based compensation – general and administrative |
|
|
|
|
| 591 |
|
|
|
|
|
|
| 265 |
|
|
|
|
|
|
| 1,835 |
|
|
|
|
|
|
| 1,336 |
|
|
| Depreciation and amortization |
|
|
|
|
| 1,778 |
|
|
|
|
|
|
| 169 |
|
|
|
|
|
|
| 3,530 |
|
|
|
|
|
|
| 305 |
|
|
| Total operating expenses |
|
|
|
|
| 9,368 |
|
|
|
|
|
|
| 2,169 |
|
|
|
|
|
|
| 18,241 |
|
|
|
|
|
|
| 4,888 |
|
|
| Operating loss |
|
|
|
|
| (5,615 |
| ) |
|
|
|
|
| (2,804 |
| ) |
|
|
|
|
| (11,318 |
| ) |
|
|
|
|
| (5,404 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other income (expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain on forgiveness of PPP Loan |
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 2,592 |
|
|
|
|
|
|
| - |
|
|
| Change in fair value of the warrant liability |
|
|
|
|
| 28 |
|
|
|
|
|
|
| 1,079 |
|
|
|
|
|
|
| 91 |
|
|
|
|
|
|
| 818 |
|
|
| Interest expense, net |
|
|
|
|
| (87 |
| ) |
|
|
|
|
| (50 |
| ) |
|
|
|
|
| (716 |
| ) |
|
|
|
|
| (88 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss before income taxes |
|
|
|
|
| (5,674 |
| ) |
|
|
|
|
| (1,775 |
| ) |
|
|
|
|
| (9,351 |
| ) |
|
|
|
|
| (4,674 |
| ) |
| (Benefit) provision for income taxes |
|
|
|
|
| 7 |
|
|
|
|
|
|
| (451 |
| ) |
|
|
|
|
| (765 |
| ) |
|
|
|
|
| (236 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
|
|
|
| (5,681 |
| ) |
|
|
|
|
| (1,324 |
| ) |
|
|
|
|
| (8,586 |
| ) |
|
|
|
|
| (4,438 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Preferred shareholders’ dividend |
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| (70 |
| ) |
| Net loss available to shares of common stockholders |
|
|
| $ |
| (5,681 |
| ) |
|
|
| $ |
| (1,324 |
| ) |
|
|
| $ |
| (8,586 |
| ) |
|
|
| $ |
| (4,508 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss per share of Common Stock - Basic and diluted |
|
|
| $ |
| (0.40 |
| ) |
|
|
| $ |
| (0.15 |
| ) |
|
|
| $ |
| (0.64 |
| ) |
|
|
| $ |
| (0.53 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares of Common Stock - Basic and diluted |
|
|
|
|
| 14,070,117 |
|
|
|
|
|
|
| 9,058,483 |
|
|
|
|
|
|
| 13,364,352 |
|
|
|
|
|
|
| 8,382,930 |
|
|
| 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 |
|
|
|
|
| Six Months Ended |
|
|
|
|
|
|
| 2022 |
|
|
|
|
| 2021 |
|
|
|
|
| 2022 |
|
|
|
|
| 2021 |
|
|
| Net income (loss) |
|
|
| $ |
| (5,681 |
| ) |
|
|
| $ |
| (1,324 |
| ) |
|
|
| $ |
| (8,586 |
| ) |
|
|
| $ |
| (4,437 |
| ) |
| Depreciation and amortization |
|
|
|
|
| 1,778 |
|
|
|
|
|
|
| 169 |
|
|
|
|
|
|
| 3,530 |
|
|
|
|
|
|
| 305 |
|
|
| Interest expense |
|
|
|
|
| 87 |
|
|
|
|
|
|
| 50 |
|
|
|
|
|
|
| 716 |
|
|
|
|
|
|
| 88 |
|
|
| Stock based compensation |
|
|
|
|
| 591 |
|
|
|
|
|
|
| (1,079 |
| ) |
|
|
|
|
| 1,835 |
|
|
|
|
|
|
| 1,336 |
|
|
| Change in fair value of warrant liability |
|
|
|
|
| (28 |
| ) |
|
|
|
|
| 265 |
|
|
|
|
|
|
| (91 |
| ) |
|
|
|
|
| (818 |
| ) |
| Income tax (benefit) |
|
|
|
|
| 7 |
|
|
|
|
|
|
| (451 |
| ) |
|
|
|
|
| (765 |
| ) |
|
|
|
|
| (237 |
| ) |
| EBITDA |
|
|
|
|
| (3,246 |
| ) |
|
|
|
|
| (2,370 |
| ) |
|
|
|
|
| (3,361 |
| ) |
|
|
|
|
| (3,763 |
| ) |
| Other costs (1) |
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 10 |
|
|
|
|
|
|
| - |
|
|
| Adjusted EBITDA |
|
|
|
|
| (3,246 |
| ) |
|
|
|
|
| (2,370 |
| ) |
|
|
|
|
| (3,351 |
| ) |
|
|
|
|
| (3,763 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted Average shares outstanding |
|
|
|
|
| 14,070,117 |
|
|
|
|
|
|
| 9,058,483 |
|
|
|
|
|
|
| 13,364,352 |
|
|
|
|
|
|
| 8,382,930 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EPS |
|
|
|
|
| (0.23 |
| ) |
|
|
|
|
| (0.26 |
| ) |
|
|
|
|
| (0.25 |
| ) |
|
|
|
|
| (0.45 |
| ) |
| (1) |
| Other costs consist of one-time expenses related to the valuation of acquisitions of SolarCommunities, Inc. |
|
|
|
|
About iSun Inc.
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 Securities and Exchange Commission, including our Annual Report on Form 10-K.
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/20220815005672/en/
IR Contact:
Tyler Barnes
IR@isunenergy.com
802-289-8141