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iSun Inc. Reports Third Quarter 2021 Results

WILLISTON, Vt.–(BUSINESS WIRE)–$isun #cleanenergy–iSun, Inc. (NASDAQ:ISUN) (the “Company”, or “iSun”), a leading solar energy and clean mobility infrastructure company 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:

  1. revenues generated by owned solar assets during the peak production months of the third quarter, and:
  2. 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.

iSun, Inc.

Condensed Consolidated Balance Sheets

September 30, 2021 (Unaudited) and December 31, 2020

 

 

September 30, 2021

 

December 31, 2020

(Restated)

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.

iSun, Inc.

 

Condensed Consolidated Statements of Operations (Unaudited)

For the three and six Months Ended September 30, 2021 and 2020

 

 

Three Months ended

 

 

Nine Months ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2021

 

 

2020

(restated)

 

 

2021

 

 

2020

(restated)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

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:

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

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

)

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.

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.

Contacts

IR:

Tyler Barnes

IR@isunenergy.com
802-289-8141

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