Isun inc. reports first quarter 2022 results
Williston, vt.--(business wire)--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 first quarter of 2022. 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 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. 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.
