iSun Reports First Quarter 2021 Results – StreetInsider.com


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WILLISTON, Vt.–(BUSINESS WIRE)–
iSun, Inc. (NASDAQ: ISUN) (“iSun” or the “Company”), a leading solar energy and clean mobility infrastructure company with 50 years of construction experience for solar, electrical and data services, today announced results for the first quarter of 2021 and provided an update to its full year 2021 outlook.

Highlights

  • Record first quarter revenue of $7.3 million, up 82.2% year-over-year, driven by new contract wins and solid market fundamentals.
  • Acquired iSun Energy, LLC in January 2021, providing deep relationships in solar industry and expansion into e-mobility market; subsequently rebranded company under the iSun name.
  • Enhanced e-mobility exposure with investments in Gemini and AmpUp.
  • Expanded presence into utility-scale solar market through the acquisition of the Intellectual Property of OCS, significantly expanding the company’s total addressable market.
  • Continued executing on organic geographic expansion strategy, including our largest solar contract win to date in Tennessee.
  • Ended first quarter 2021 with a record cash balance of $20 million.
  • First quarter 2021 backlog of $81 million, up 33% quarter-over-quarter, and nearly double first quarter 2020.

For the first quarter 2021, iSun reported a net loss of $3.1 million, or ($0.41) per share, compared to a net loss of $0.8 million, or ($0.15) per share, in first quarter 2020. First quarter 2021 EBITDA was ($1.4) million, compared to ($0.34) million in first quarter 2020. The year-over-year decline in EBITDA was due largely to higher general & administrative expenses and slightly lower gross profit due to the impacts of COVID related shutdowns and higher than expected costs on certain projects in progress.

Management Commentary

“We had a solid start to the year with record first quarter revenue and continued strong backlog growth, building on the momentum we experienced late in 2020,” said Jeffrey Peck, Chairman and Chief Executive Officer of iSun. “Despite several COVID shutdowns on a specific project, the overall operating environment continues to strengthen, and we are well positioned to take advantage of these trends given the strategic actions we have taken over the past year, which should drive solid growth in 2021 and beyond.”

“Demand for solar-energy remains robust and we continue to solidify our position as a market leader in supporting the transition from dirty energy to clean energy,” continued Peck. “Our geographic expansion continues with our largest project to date, a $25 million micro-grid solar project in Tennessee. Additionally, we entered the rapidly growing utility-scale solar market with the acquisition of OCS in April, increasing our addressable market and enhancing our ability to benefit from our GreenBonds partnership as their project pipeline progresses.”

“Over the last several months, we have worked to build iSun into one of the largest pure-play solar companies in the United States,” stated Peck. “Following the January acquisition of iSun Energy, LLC, in March, we made strategic investments in Gemini and AmpUp, bolstering our presence in the e-mobility space with high-quality partners and experienced management teams, and building on our internal expertise in iSun’s legacy business. With $20 million of cash on the balance as of the end of the quarter, we have the flexibility to continue to execute on our growth strategy.”

First Quarter 2021 Results

The Company reported revenue of $7.3 million in the first quarter 2021, an increase of 82.2% when compared to the first quarter 2020. Revenue growth was driven by strong project awards in the second half of 2020 and in early-2021, including multiple projects in new regions and the continued ease of pandemic-related restrictions in our key service areas.

Gross profit was $0.1 million in the first quarter 2021, compared to $0.3 million in the first quarter 2020. Gross margin the quarter was 1.6% in the quarter, compared to 7.9% in the first quarter 2020. Lower gross margin in first quarter 2021 was mainly due to several COVID-19 related project shutdowns at multiple projects which drove higher costs and impacted productivity during the quarter, as well as a design issue with a solar array that was delivered to a project site. This solar array has now been replaced with the correct design. Additionally, first quarter gross margin is typically lower than average due to seasonality and mix factors, with greater EPC revenue and less solar power generating revenue from owned solar assets.

The operating loss in the first quarter 2021 was ($2.6) million, compared to ($0.5) million in first quarter 2020. The year-over-decline was mainly due to lower gross profit and higher general and administrative costs related to several of our recent strategic initiatives, including the iSun, LLC acquisition in January 2021, and to fund growth given the increase in our backlog compared to last year.

Total backlog increased to $81 million at end of first quarter 2021, versus $61 million and $41 million at the end of the fourth quarter 2020 and first quarter 2020, respectively. Awards in the quarter were driven by several key wins including new markets. Management expects to realize revenue on nearly all of its current backlog over the next twelve to eighteen months.

Strategic Investments and Acquisitions

iSun Energy, LLC was acquired in January 2021, and the company subsequently rebranded under the iSun, Inc. name. iSun enhanced the company’s position in the solar energy market by bringing deep relationships in the solar industry and providing the Company exposure to the e-mobility infrastructure market, with iSun’s Energy & Mobility, a highly innovative solar charging solution for electric vehicles. Additionally, as part of the acquisition, Sass Peress, the Founder and Chief Executive Officer of iSun Energy, LLC joined the company as Chief Innovation and Experience Officers.

In March 2021, iSun made a $1.5 million strategic investment in Gemini Electric Mobility Co. (“Gemini”), an electric vehicle and charging company for the gig-driver, and a $1.0 million strategic investment in Nad Grid Corp. (“AmpUp”), an electric vehicle software and network provider that enables drivers, hosts, and fleet to charge stress-free. These investments enhance the services offered in iSun’s e-mobility business and are expected to drive incremental demand for iSun’s Energy & Mobility Hub.

In April 2021, iSun acquired all of the intellectual Property of Oakwood Construction Services, Inc., and its affiliates (“OCS”), a utility-scale solar EPC company. Total consideration for the transaction was $2.7 million, with $1.0 million due immediately and the remaining $1.7 million contingent upon the achievement of certain milestones. To-date, these milestones have not been met. This acquisition provides iSun entry into the utility-scale solar market, one of the fastest growing subsegments of the solar energy market, but also improves its large project execution capabilities as it seeks larger projects in legacy and new geographic markets.

Liquidity Update

At the end of the first quarter 2021, iSUN had total cash of $20.2 million. As of March 31, 2021, the Company had total debt outstanding of $5.6 million and approximately $2.4 million of availability on its revolving line of credit.

During the first quarter 2021, the Company received cash proceeds of approximately $17.4 million from the exercise of its Public Warrants and an additional approximately $9.6 million from the registered direct offering in January 2021. As of May 14, 2021, iSun had a total cash balance of approximately $21 million.

2021 Outlook

iSun expects to see continued strong demand for its solar energy and e-mobility infrastructure services in 2021, supported by the global transition toward clean energy and the resulting growth in investments in new PV solar installations and electric vehicle charging infrastructure.

With a robust backlog of $81 million, which is expected to convert to revenue over the next twelve to eighteen months, together with a strong pipeline of project opportunities, the Company continues to expect to at least double revenue in 2021 as compared to 2020. The Company also expects to generate improved EBITDA margin throughout the year, give improved operating efficiencies, greater economies of scale, and the introduction of new product and service offerings.

Restatement

On May 20, 2021, the Company concluded that, because of a misapplication of the accounting guidance to its public and private placement warrants, the Company’s previously issued financial statements for the periods ended December 31, 2020 and 2020 and the quarters ended September 30, 2020, June 30, 2020, March 31, 2020, September 30, 2019, and June 30, 2019 should no longer be relied upon. As such, the Company is restating its unaudited financial statements for these periods. Please see the Company’s Form 10-Q for the period ended March 31, 2021 on file with the SEC for additional disclosure on this topic. As of April 12, 2021, all of the company’s public outstanding warrants were either exercised or redeemed, and no public warrants remain outstanding. All figures in this press release have been adjusted accordingly to reflect the restatement.

First Quarter 2021 Conference Call Details

iSun will host a conference call on Tuesday, May 25, 2021 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 877-407-8133, using Conference ID #41255. An archived audio replay will be available through June 1, 2021 at 877-481-4010, Conference ID# 41255.

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 in order to register, download, and install any necessary audio software.

iSun, Inc.

Condensed Consolidated Balance Sheets

March 31, 2021 (Unaudited) and December 31, 2020

 

 

March 31, 2021

December 31, 2020

(Restated)

Assets

 

 

Current Assets:

 

 

Cash

$20,206,778

$699,154

Accounts receivable, net of allowance

7,442,640

6,215,957

Inventory

 

 

1,534,859

 

 

Costs and estimated earnings in excess of billings

2,601,682

1,354,602

Other current assets

241,205

214,963

Total current assets

32,027,164

8,484,676

 

 

 

 

 

 

 

Property and Equipment, net of accumulated depreciation

 

 

6,114,584

 

 

6,119,800

Captive insurance investment

233,487

198,105

Intangible assets

 

 

3,007,033

 

 

Investments

 

 

7,220,496

 

 

4,820,496

 

10,461,016

5,018,601

Total assets

$48,602,764

$19,623,077

Liabilities and Stockholders’ Equity

 

 

Current Liabilities:

 

 

Accounts payable, includes bank overdraft of $1,246,437 at December 31, 2020

$3,757,582

$4,086,173

Accrued expenses

134,029

172,021

Billings in excess of costs and estimated earnings on uncompleted contracts

1,561,829

1,140,125

Due to stockholders

52,170

24,315

Line of credit

3,682,818

2,482,127

Current portion of deferred compensation

28,656

28,656

Current portion of long-term debt

296,484

308,394

Total current liabilities

9,513,568

8,241,811

Long-term liabilities:

 

 

Deferred compensation, net of current portion

54,185

62,531

Deferred tax liability

824,129

610,558

Warrant liability

 

 

1,386,379

 

 

1,124,411

Long-term debt, net of current portion

1,625,801

1,701,495

Total liabilities

13,404,062

11,740,806

Commitments and Contingencies (Note 8)

 

 

Stockholders’ equity:

 

 

Preferred stock – 0.0001 par value 200,000 shares authorized, 0 and 200,000 issued and outstanding at March 31, 2021 and December 31, 2020, respectively

20

Common stock – 0.0001 par value 49,000,000 shares authorized, 8,784,196 and 5,313,268 issued and outstanding as of March 31, 2021 and December 31, 2020, respectively

878

531

Additional paid-in capital

33,076,459

2,577,359

Retained earnings

2,121,365

5,304,361

Total Stockholders’ equity

35,198,702

7,882,271

Total liabilities and stockholders’ equity

$48,602,764

$19,623,077

iSun, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

For the Three Months Ended March 31, 2021 and 2020

 

 

2021

2020

(Restated)

 

 

 

Earned revenue

$7,260,657

3,984,680

Cost of earned revenue

7,141,760

3,668,167

Gross profit

118,897

316,513

 

 

 

Warehouse and other operating expenses

183,476

192,942

General and administrative expenses

1,465,064

617,748

Stock based compensation – general and administrative

 

 

1,070,908

 

 

Total operating expenses

2,719,448

810,690

Operating loss

(2,600,551)

(494,177)

 

 

 

Other expenses

 

 

Change in fair value of the warrant liability

 

(261,968)

 

(357,605)

Interest expense, net

(36,493)

(80,766)

 

 

 

Loss before income taxes

(2,899,012)

(932,548)

Provision (benefit) for income taxes

214,321

(142,311)

 

 

 

Net loss

(3,113,333)

(790,237)

 

 

 

Preferred stock dividend

(69,663)

 

 

 

Net loss available to shares of common stockholders

$(3,182,996)

$(790,237)

 

 

Net loss per common share-Basic and diluted

$(0.41)

$(0.15)

 

 

 

 

 

 

 

Weighted average shares of common stock- Basic and diluted

7,695,279

5,298,159

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 following table presents a reconciliation of Adjusted EBITDA to income from continuing operations for the periods shown (in thousands, except ratios):

 

Three months ended

March 31,

 

2021

2020

(restated)

Net loss

$(3,113,333)

$(790,237)

Depreciation and amortization

135,825

155,012

Interest expense

36,493

80,766

Change in fair value of warrant liability

 

 

261,968

 

 

357,605

Stock based compensation

 

 

1,070,908

 

 

Income tax (benefit)

214,321

(142,311)

EBITDA

(1,393,818)

(339,165)

Weighted Average shares outstanding

7,695,279

5,298,159

Adjusted EPS

(0.18)

(0.06)

ABOUT iSUN

Headquartered in Williston, VT, iSun, Inc. (NASDAQ: ISUN) is a business rooted in values that align people, purpose, innovation, and sustainability. Ranked by Solar Power World as one of the leading commercial solar contractors in the United States, iSun provides solar energy and clean mobility infrastructure to customers for projects from smart solar mobile phone and electric vehicle charging, up to multi-megawatt renewable energy solutions for commercial, industrial, and utility customers. iSun’s innovations were recognized this year by the Solar Impulse Foundation of Bertrand Piccard as one the globe’s Top 1000 Sustainability Solutions. As a winner, this award will result in the iSun solution being presented to hundreds of government entities around the world, including various municipal, state, and federal agencies in the United States. Since entering the renewable energy market in 2012, iSun has installed over 650 megawatts of rooftop, ground- mount and EV-carport solar systems (equal to power required for 123,500 homes). We continue to focus on profitable growth opportunities. For more information, visit www.isunenergy.com

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about (i) iSun’s plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts; and (ii) other statements identified by words such as “expects” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “targets,” “projects,” or words of similar meaning generally intended to identify forward-looking statements. These forward-looking statements are based upon the current beliefs and expectations of the respective management of iSun and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of iSun. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the anticipated results discussed in these forward-looking statements because of possible uncertainties.

INVESTOR CONTACT

Chase Jacobson

IR@isunenergy.com

802-264-2040

Source: iSun, Inc.

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May 25, 2021 susan ward