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iSun Reports First Quarter 2021 Results

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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

​

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iSun, Inc.

NASDAQ:ISUN

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