Q3 2023 revenues of $27.9 million, a 47%
increase from Q3 2022, driven by higher demand in commercial and
industrial division and strong execution of company’s
strategy
Reaffirms expectations for total revenue of
$95-100 million in 2023, a 24-31% increase over 2022
Signs term sheet for non-dilutive $8 term
loan
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 financial results for the
third quarter of 2023 ended September 30, 2023.
Quarterly Highlights
- Q3 2023 revenue of $27.9 million, up 47% from Q322, as
continued strong commercial and industrial execution drives
growth
- YTD revenue of $70.3 million, up 39% over first nine months
of 2022
- Gross profit of $5.4 million, up 50% from Q322
- Gross margin of 19.45%, up 45 basis points from 19.0% in
2022’s third quarter, as benefits from synergies were offset by
mix
- Awarded $27.0 million in new solar and EV infrastructure
contracts in Q3 2023, with a total of $67.0 million in first nine
months of 2023
- Continuing successful execution of growth strategy,
leveraging tailwinds
Management Commentary
“Our commercial and industrial segment continues to respond
exceptionally well to the increased demand and momentum in the
market, which enabled iSun to generate 47% higher revenue and a 45
basis point improvement in margins in the 2023 third quarter
compared to last year. Our team is focused on executing our growth
strategy, leveraging the positive tailwinds from climate
legislation and higher customer interest in alternative energy
solutions, despite challenges associated with higher interest rates
for residential customers,” said Jeffrey Peck, Chief Executive
Officer of iSun. “I am very pleased by our continued success in
achieving new contract wins, as we added $27 million in the third
quarter, for a total of $67 million in the first nine months of
this year, a record pace for iSun. The continued focus on solar
energy and clean mobility provides critical support to our
marketing efforts, and we intend to leverage our existing
relationships, as well as our most recent partnership with
Cleantech Industry Resources, to drive increased business
opportunities. I am also pleased by the reduction in our operating
costs even as we increase revenues, as we continuously improve our
operations as we scale, through efficiency, innovation and
collaborations, all of which offset challenges we experience from
supply chain and macroeconomic constraints. Our strong progress so
far this year provides us with the confidence to reaffirm our
annual revenue guidance for 2023, as we implement and complete our
many projects.”
Third Quarter and Year to Date
Results
iSun reported third quarter 2023 revenue of $27.9 million, up
47% from $19.0 million in the same period in 2022. YTD revenue was
$70.3 million, representing a $19.7 million or 39% increase over
the same period in 2022. Revenue growth was driven primarily by the
fulfillment of commercial and industrial projects across multiple
states receiving notice to proceed as well as our residential
backlog; total backlog was $161.8 million as of September 30, 2023.
iSun also generated new future demand by adding $27 million in new
business during the third quarter and a total of $67 million in the
first nine months of 2023, primarily driven by strong demand for
commercial and industrial services as well as for focused project
origination and design services for partners on large national
carport projects.
Divisional highlights as of September 30, 2023, include:
- Residential division generated revenue of $8.3 and $24.5
million in the third quarter and YTD respectively. Customer orders
of approximately $15.0 million are expected to be completed within
three to five months.
- The commercial and industrial division, which were consolidated
as of January 1, 2023, generated revenue of $18.8 and $44.7 million
in the third quarter and YTD respectively; the division has a
contracted backlog of approximately $140.3 million expected to be
completed within 10-18 months.
- Utility and development division generated revenue of $0.9 and
$1.2 million in the third quarter and YTD respectively. The Utility
division has a contracted backlog of approximately $6.5 million and
1.6 GW of projects currently under development expected to achieve
NTP in early 2024.
Gross profit in the third quarter was $5.4 million, up 50% from
$3.6 million in the third quarter of 2022. Gross margin for the
quarter was 19.45%, up 45 basis points from 19.0% in the same
period in 2022. YTD gross profit was $14.9 million, up 41% compared
to $10.5 million during the same period in 2022. YTD gross margin
was 21.2%, up 40 basis points compared to 20.8% during the same
period in 2022.
The operating loss in the third quarter was ($1.8) million, a $3
million or 64% improvement compared to a loss of ($4.9) million in
2022’s third quarter, primarily reflecting the higher revenues and
lower operating expenses as part of the company’s efficiency focus.
YTD operating income was a loss of ($6.2) million, a $10 million or
62% reduction compared to a loss of ($16.2) million during the same
period in 2022. Non-cash depreciation and amortization expenses
were $0.8 million in the third quarter of 2023, compared to $1.8
million in prior year period. YTD non-cash depreciation and
amortization expenses were $2.3 million compared to $5.3 million in
the same period in 2022.
iSun reported a net loss of ($2.2) million, or ($0.07) per
share, in the third quarter of 2023, compared to a net loss of
($4.9) million, or ($0.36) per share, in the same period in 2022.
YTD net loss was ($7.8) million or ($0.35) per share compared to a
net loss of ($13.5) million or ($0.98) per share in the same period
in 2022.
Adjusted EBITDA for the third quarter of 2023 was a loss of
($0.5) million or ($0.02) per share, compared to a loss of ($2.5)
million or ($0.18) per share in 2022’s third quarter. YTD Adjusted
EBITDA was a loss of ($2.3) million or ($0.10) per share compared
to a loss of ($5.9) million or ($0.43) per share in the same period
in 2022.
Outlook
iSun’s continuing success in winning new business, from solar
projects to EV infrastructure and project origination and
development services, along with its sizable backlog, is expected
to enable the company to produce total revenue of $95-100 million
for the full year 2023, representing a 24-31% increase over total
revenues of $76.5 million in 2022. With the positive results from
its focus on efficiency so far this year, iSun also anticipates
improved sequential adjusted EBITDA in the fourth quarter of 2023;
operating profitability and margin expansion each quarter remains a
goal, although they remain impacted by revenue mix in any
quarter.
Added Mr. Peck, “We continue to make substantial progress
towards the targets we set for iSun’s performance this year, as we
execute on our strategy and fulfill our commitments to investors.
We remain confident that our expanded capabilities effectively
address the needs of more customers and position us to accelerate
our growth in the evolving alternative energy sector. Our continued
success in winning significant contracts with existing and new
customers reflects the appeal of our platform approach that
delivers a suite of services to meet the needs of diverse
customers. This year, we are also benefiting from the expertise of
our team in executing efficiently on our backlog to address our
customers’ needs and leveraging the relationships and partnerships
we have established. Now that our country’s energy policy has been
established for the next 10 years through the IRA legislation
passed in 2022, we expect those factors to help us scale our
operations significantly in the next few years, no matter what
macroeconomic challenges may persist, and thus enable us to
generate steadily higher revenue and reach operating profitability
in the years ahead.”
Financing Update
iSun announced today that it had signed a term sheet for an $8
non-dilutive term loan that will amortize over four years. John
Sullivan, Chief Financial Officer, said, “We see this new
non-dilutive financing as a strong validation of our long-term
value and look forward to completing the agreement shortly.”
Third Quarter 2023 Conference Call
Details
iSun will host a conference call today, Tuesday, November 14, at
8:30 AM ET to review the Company’s financial results and discuss
its operations and outlook. Participants can access the live
conference call via telephone at 1-888-506-0062 (domestic) or
1-973-528-0011 (international), using conference ID 393609 or via
webcast in the Investor Relations section of the iSun website at
investors.isunenergy.com. An audio replay will be available through
Tuesday, November 28, 2023, and can be accessed by dialing
1-877-481-4010 (domestic) or 1-919-882-2331 (international), using
conference code 49411. A webcast of the conference call will be
available beginning approximately one hour after the call is
completed at investors.isunenergy.com.
iSun, Inc.
Condensed Consolidated Balance
Sheets as of
September 30, 2023 (Unaudited)
and December 31, 2022
(In thousands, except number of
shares)
September 30, 2023
December 31, 2022
Assets
Current Assets:
Cash
$
5,600
$
5,455
Accounts receivable, net of allowance
13,127
8,783
Contract assets
11,485
7,324
Inventory
1,569
2,536
Other current assets
1,698
1,625
Total current assets
33,479
25,723
Other Assets:
Property and equipment, net of accumulated
depreciation
8,297
8,440
Operating lease right-of-use assets,
net
6,479
6,960
Captive insurance investment
629
270
Intangible assets, net
12,839
14,038
Investments
12,020
12,020
Other assets
30
30
Total other assets
40,294
41,758
Total assets
$
73,773
$
67,481
Liabilities and Stockholders’
Equity
Current Liabilities:
Accounts payable
$
20,783
$
12,941
Accrued expenses
4,677
5,868
Operating lease liability
598
588
Contract liabilities
6,439
5,419
Current portion of deferred
compensation
8
31
Current portion of long-term debt
8,544
5,374
Total current liabilities
41,049
30,221
Long-term liabilities:
Warrant liability
178
10
Operating lease liability, net of current
portion
6,261
6,711
Other liabilities
2,448
3,026
Long-term debt, net of current portion
883
8,226
Total liabilities
50,819
48,194
Contingencies (Note 1l)
-
-
Stockholders’ equity:
Preferred stock - 0.0001 par value
1,000,000 shares authorized, 0 issued and outstanding as of
September 30, 2023 and December 31, 2022
-
-
Common stock – 0.0001 par value 49,000,000
shares authorized, 34,940,885 and 15,083,109 issued and outstanding
as of September 30, 2023, and December 31, 2022, respectively
3
2
Additional paid-in capital
85,492
74,070
Accumulated deficit
(62,541
)
(54,785
)
Total Stockholders’ equity
22,954
19,287
Total liabilities and stockholders’
equity
$
73,773
$
67,481
The accompanying notes are an integral part of
these consolidated financial statements.
iSun, Inc.
Condensed Consolidated Statements
of Operations
For the Three and Nine Months
Ended September 30, 2023 and 2022 (Unaudited)
(In thousands, except number of
shares and per share data)
Three Months ended
Nine Months ended
September 30,
September 30,
2023
2022
2023
2022
Earned revenue
$
27,909
$
19,034
$
70,274
$
50,597
Cost of earned revenue
22,481
15,417
55,360
40,057
Income before operating expenses
5,428
3,617
14,914
10,540
Warehousing and other operating
expenses
183
172
634
1,539
General and administrative expenses
5,747
5,965
16,930
17,474
Stock based compensation – general and
administrative
494
567
1,240
2,402
Depreciation and amortization
782
1,770
2,294
5,300
Total operating expenses
7,206
8,474
21,098
26,715
Operating loss
(1,778
)
(4,857
)
(6,184
)
(16,175
)
Other (expense) income:
Gain on forgiveness of PPP Loan
-
-
-
2,592
Change in fair value of the warrant
liability
(178
)
7
(168
)
98
Loss on debt conversion
-
-
(303
)
-
Interest expense, net
(292
)
(84
)
(1,089
)
(800
)
Other (expense) income
(470
)
(77
)
(1,560
)
1,890
Loss before income taxes
(2,248
)
(4,934
)
(7,744
)
(14,285
)
Tax expense (benefit)
-
-
12
(765
)
Net loss
$
(2,248
)
$
(4,934
)
$
(7,756
)
$
(13,520
)
Net loss per share of Common Stock - Basic
and diluted
$
(0.07
)
$
(0.36
)
$
(0.35
)
$
(0.98
)
Weighted average shares of Common Stock -
Basic and diluted
30,898,334
13,546,624
22,222,377
13,769,564
The accompanying notes are an integral part of
these 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,
2023
2022
2023
2022
Net income (loss)
$
(2,248
)
$
(4,934
)
$
(7,756
)
$
(13,520
)
Depreciation and amortization
782
1,770
2,294
5,300
Interest expense
292
84
1,089
800
Stock based compensation
494
567
1,240
2,402
Loss on conversion of debt - - 303 -
Change in fair value of warrant
liability
178
(7
)
168
(98
)
Income tax (benefit)
-
-
12
(765
)
EBITDA
(495
)
(2,520
)
(2,650
)
(5,881
)
Other costs(1)
-
10
350
10
Adjusted EBITDA
$
(495
)
$
(2,510
)
$
(2,300
)
$
(5,871
)
Weighted Average shares outstanding
30,898,334
13,546,624
22,222,377
13,769,564
Adjusted EBITDA per share
(0.02
)
(0.18
)
(0.10
)
(0.43
)
(1)
Other costs consist of one-time legal
expenses related to the settlement of a lawsuit.
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.
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Investor Relations IR@isunenergy.com
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