Revenues of $19.0 million, 185% increase over Q3 2021 and 15.5% increase from Q2 2022, driven by solid execution and increased demand

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 financial results for the third quarter of 2022.

Quarterly Highlights

• Revenue of $19.0 million, an increase of 185% from the third quarter of 2021
• Gross profit of $3.6 million, compared to $1.3 million in last year’s third quarter
• Awarded $9.3 million, 12.1 MW contracts with a new customer, expanding footprint in Maine
• Awarded $3.0 million, 3.2 MW contract in Maryland, expanding presence in Mid-Atlantic, one of largest energy markets in US
• Signs new $25 million credit facility to support growth plans and refinance debt subsequent to quarter

Management Commentary

“Our revenue nearly tripled in the third quarter, up to $19 million, despite continuing industry-wide challenges,” said Jeffrey Peck, Chief Executive Officer of iSun. “We added $50.2 million in backlog and our total backlog is now a record $179.1 million. Our pipeline reached 1.3GW of projects as of the end of this year’s third quarter, up 1GW from the same point last year. We are really proud of the team’s hard work in attaining these results. I believe we’re beginning to recognize our potential, leveraging the strategic investments made over the past year to build out our platform and footprint, with opportunities to scale and drive accelerated growth over the longer-term. Most importantly, we believe that the support and stability provided in the recent climate change legislation removes uncertainty and impediments to financing and constructing the longer-term commitments that are necessary to build the alternative energy our country needs, which aligns so well with our company mission.”

Third Quarter and Year-to-Date Results

iSun reported third quarter 2022 revenue of $19.0 million, representing a $12.4 million or 185% increase over the same period in 2021. YTD revenue in 2022 was $50.6 million, representing a $32.3 million or 177% increase over the same period in 2021. This year’s revenue growth was driven by the continued fulfillment of increased residential consumer demand and execution on the higher commercial and industrial backlog, which was $179.1 million as of September 30, 2022. iSun also generated new future demand by adding $50.2 million in new business during the third quarter.

Divisional highlights include:

• Residential division generated revenue of $10.2 million and $24.3 million in the third quarter and YTD, respectively. Customer orders are approximately $25.8 million and expected to be completed within three to six months.
• Commercial division generated revenue of $1.1 million and $3.4 million in the third quarter and YTD, respectively, and has a contracted backlog of approximately $12.6 million expected to be completed within six to eight months.
• Industrial division generated revenue of $5.9 million and $19.1 million in the third quarter and YTD, respectively, and has a contracted backlog of approximately $140.7 million expected to be completed within 12 to 18 months.
• Utility and development division generated revenue of $1.8 million and $3.8 million in the third quarter and YTD, respectively. The Utility division has 1.3 GW of projects currently under development with projects achieving NTP in 2023.

Gross profit in the third quarter was $3.6 million compared to $1.3 million in the third quarter of 2021. Gross margin for the quarter was 19.0%, compared to 19.5% in the same period in 2021. YTD gross profit was $10.5 million compared to $0.8 million in the same period in 2021. YTD gross margin was 20.8% compared to 4.3% in the same period in 2021. As synergies among the company’s segments grow, gross margin is expected to strengthen.

Operating income in the third quarter was a loss of ($4.9) million compared to a loss of ($1.6) million in 2021’s third quarter. YTD operating income was a loss of ($16.2) million compared to a loss of ($7.0) million in the same period in 2021. Non-cash depreciation and amortization expenses were $1.8 million in the third quarter of 2022, compared to $0.3 million in prior year period. YTD 2022 non-cash depreciation and amortization expenses were $5.3 million compared to $0.6 million in the same period in 2021.

iSun reported a net loss of ($4.9) million, or ($0.36) per share in the third quarter of 2022, compared to a net loss of ($0.7) million, or ($0.08) per share in the same period in 2021. YTD 2022 net loss was ($13.5) million or ($0.98) per share compared to a net loss of ($5.1) million or ($0.60) per share in the same period in 2021.

Adjusted EBITDA for the third quarter of 2022 was a loss of ($2.5) million or (0.18) per share, compared to a loss of ($1.1) million or ($0.12) per share in the same period in 2021. YTD 2022 Adjusted EBITDA was a loss of ($3.4) million or ($0.24) per share, compared to a loss of ($4.8) million or ($0.56) per share in the same period in 2021.

Subsequent to the third quarter, iSun secured a new debt facility of $25 million; the agreement was finalized on November 4, 2022. John Sullivan, Chief Financial Officer, stated, “We are very pleased with our new credit facility, which refinances our current debt and provides capital for continued growth. We remain focused on strengthening our balance sheet to improve our cash position and liquidity ratios. Collections remain strong, enabling us to invest in inventory to meet the needs of our growing customer backlog and mitigate supply chain risks.”

Outlook

iSun’s comprehensive platform and recent investments position the company to respond effectively to increased energy demand associated with both solar energy and automotive electrification, and make iSun an important partner to consumers, businesses, industries, and utilities as they transition to renewable energy sources. iSun expects the recent climate legislation, contained in the Inflation Reduction Act of 2022, to provide a more favorable environment for solar development and EV infrastructure over the next 10 years.

In the near term, iSun currently expects that continued supply chain constraints affecting key materials in the solar industry and elongated permitting cycles for commercial projects, as well as continued delays in finalizing major utility division contracts, will extend the revenue recognition of anticipated 2022 projects into 2023. Accordingly, the company now anticipates total revenue for full-year 2022 between $70-75 million, representing approximately 60-65% growth from full-year 2021.

Added Mr. Peck, “Our full portfolio of capabilities position us to accelerate our growth trajectory, as demonstrated by the increased number of recent significant contract awards. Our platform delivers a much-needed suite of services and our team brings the experience and expertise to execute on our customers’ needs. We are experiencing increased demand and a growing customer base, driven by the significant higher residential and commercial energy costs. Now that our country’s energy policy has been established for the next 10 years, we are confident that the macroeconomic factors exist to enable us to scale significantly and generate higher longer-term revenue growth.”

Third Quarter 2022 Conference Call Details

iSun will host a conference call today, Tuesday, November 15, at 8:30 AM ET to review the Company’s financial results and discuss recent events. Participants can access the live conference call via telephone at 1-888-506-0062 (domestic) or 1-973-528-0011 (international), using conference ID 141389, or via webcast in the Investor Relations section of the iSun website at investors.isunenergy.com. An audio replay will be available through Wednesday, November 30, 2022, and can be accessed by dialing 1-877-481-4010 (domestic) or 1-919-882-2331 (international), using conference code 47018. A webcast of the conference call will be available beginning approximately one hour after the call is completed at investors.isunenergy.com.

iSun, Inc.

Consolidated Balance Sheets

September 30, 2022 (Unaudited) and December 31, 2021

(In thousands, except number of shares)

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 Nine Months Ended September 30, 2022 and 2021

(In thousands, except number of shares)

Other Articles - Utility Business / General