ISUN stock exploded more than 42% higher in pre-market trading on November 18, 2021, after the company gave forward guidance.

iSun Inc. Announces 2022 Revenue Guidance of $165 Million

WILLISTON, Vt.–(BUSINESS WIRE)– iSun, Inc. (NASDAQ: ISUN), a leading solar energy and clean mobility infrastructure company with 50 years of construction experience in solar, electrical and data services, today announced its earnings outlook for FY2022.

Growth fueled by increased energy demand associated with accelerating EV adoption; to be realized through backlog conversion, organic growth, expansion into new geographic markets and consumer demand

Highlights:

  • iSun’s execution of its Strategic Plan projected to generate $165 million in revenue across its four segments.
  • Residential Division forecasts $45 million, with gross margins between 25% and 30%.
  • Commercial Division forecasts $15 million, with gross margins between 16% and 20%.
  • Industrial Division forecasts $55 million, with gross margins between 15% and 18%.
  • Utility Division forecasts $50 million, with gross margins between 15% and 18%.

“In 2022, we will begin to transition from the development of our platform to its deployment,” commented iSun Chief Executive Officer Jeffrey Peck. “As we do, we will begin providing guidance on each of these four distinct segments for the first time. While the practice is new for us, the principle is not. We have a 50-year legacy of delivering complex, technologically advanced projects on-time and on budget; we have earned a reputation as a reliable, trusted partner accordingly. We’re proud to extend the legacy of serving our customers to our shareholder base.”

iSun forecasts 2022 revenues of $165 million across its Residential, Commercial, Industrial and Utility segments, with an aggregate gross margin between 18% and 21%. iSun anticipates achieving these targets through a combination of organic growth, geographic expansion, continued execution of its project backlog and consumer demand.

Residential.

SunCommon, iSun’s Residential Brand, forecasts $45 million in revenue with gross margins between 25% and 30%. Contributing factors to this guidance include:

  • Current demand of $22.1 million. SunCommon maintains current customer demand (projects expected to be completed within the next 4-6 months) of $22.1 million.
  • SunCommon’s low cost of customer acquisition (CAC). SunCommon’s reported CAC of $0.36 / Wdc are less than half than the industry average of $0.75 / Wdc1.
  • Organic growth in SunCommon’s core Vermont and Hudson Valley NY markets.
  • Expansion growth across the East Coast. SunCommon anticipates expanding into complementary markets across the East Coast.

Commercial.

iSun’s Commercial Division forecasts $15 million in revenue, with gross margins between 16% and 20%. Contributing factors to this guidance include:

  • Current demand of $9.6 million. SunCommon maintains current customer demand (projects expected to be realized within the next 4-6 months) of $9.6 million.
  • Accelerated consumer demand for EVs. iSun anticipates accelerating consumer demand for EVs to increase adoption of both solar and EV charging solutions for destination consumer businesses.
  • Organic growth in SunCommon’s core Vermont and Hudson Valley NY markets.
  • Expansion growth across the East Coast. SunCommon anticipates expanding into complementary markets across the East Coast.

Industrial.

iSun’s Industrial Division forecasts $55 million in net revenue, with gross margins between 15% and 18%. Contributing factors to this guidance include:

  • Current backlog of $80.7 million. iSun currently maintains an $80.7 million backlog of projects expected to be completed within the next 12-18 months.
  • Organic expansion in iSun’s core Northeast territory.
  • Strategic expansion into new markets with development partners. iSun expects to enter new geographic markets through its long-standing relationships with select development partners.
  • Realization of projects provided through iSun’s Development and Professional services pipeline. iSun maintains the rights to EPC work for 118MW of projects currently in development through agreements structured through iSun’s Development and Professional services team.

Utility.

iSun’s Utility Division forecasts $50 million in revenue with gross margins between 15% and 18%. Contributing factors to this guidance include:

  • Accelerating demand for solar resulting from EV adoption. Increasing solar energy demand across all sectors is driving utility scale development and demand for iSun’s EPC services.
  • Realization of projects provided through iSun’s Development and Professional Services pipeline. iSun maintains EPC rights for 448MW of projects in Alabama, the first of which is expected to commence in Q3 2022.
  • iSun continues to explore strategically relevant, immediately accretive M&A opportunities. This guidance does not account for any such opportunities or transactions. iSun will provide updated guidance in the event of a transaction accordingly.

“We went public in 2019 to realize our vision of creating a platform capable of accelerating adoption for solar across all segments of the marketplace – residential, commercial, industrial, and utility,” continued Peck. “We’ve created a platform that does just that. In addition, our platform will also help accelerate the adoption of EVs. Not every EV owner will be able to install a charger at their home or have access to chargers at the places they work, or the businesses they frequent. By improving access to EV charging at scale across all segments, iSun is helping ensure that members of all communities will have access to EV adoption.”

iSun Inc. Reports Third Quarter 2021 Results

On November 15, 2021, iSun, Inc. (NASDAQ:ISUN) announced results for the third quarter of 2021.

Highlights

  • YTD quarter revenue of $18.3 million, up 56% year-over-year, driven by execution against a robust Commercial and Industrial project backlog, the addition of a new Development and Professional Services revenue stream, and continued deployment of EV infrastructure.
  • Gross profit of $1.3 million for the quarter compared to $0.2 million for the same period in 2020; YTD gross profit of $0.8 million compared to $0.6 million for the same period in 2020.
  • Margins returned to pre-Covid levels as iSun completed projects affected by increasing raw material prices.
  • Third quarter 2021 backlog of $80.7 million, exclusive of the $9.6 million C&I backlog obtained through the acquisition of SunCommon.

Management Commentary

“The recent trend towards the electrification of everything – particularly automobiles – suggests that we are about to experience a massive increase in electricity demand,” said Jeffrey Peck, Chairman and Chief Executive Officer of iSun. “By 2035, 100% of all new vehicles offered in North America by Ford, General Motors, and Mercedes will be electric or hybrid. Currently, the average EV requires 30 kilowatt-hours to travel 100 miles. This is the same amount of electricity an average American home uses each day. Imagine the implications for two-car household families: Overnight, their household electricity demand could double. Because such increases are coming as we retreat from coal and other fossil fuels, we’ve no choice but to rely on renewable energy sources to meet increased demand.

“iSun – with its combination of capabilities and experience – is uniquely capable of accelerating the transition from dirty to clean energy required to meet our nation’s increasing energy demands,” stated Peck. “With our recent acquisition of SunCommon, we’ve built a platform capable of serving all customer segments of the marketplace and advancing our mission to accelerate the adoption of solar.”

Third Quarter Results
iSun reported third quarter 2021 revenue of $6.7 million representing a $1.7 million or 34% increase over the same period in the prior year. Year to date 2021 revenue was $18.3 million, representing a 56% increase over the same period in the prior year. Revenue growth was driven by the continued execution of our Commercial and Industrial project backlog, the addition of a new Professional Services revenue stream and continued deployment of our EV Infrastructure.

Gross profit in the second quarter was $1.3 million compared to $0.3 million during the third quarter in the prior year. Year to date gross profit was $0.8 million compared to $0.6 million during the same period in the prior year. iSun experienced industry wide material and component price increases as well as labor shortages that negatively impacted project margins through the first half of the year. During the third quarter, iSun’s margins returned to normal pre-COVID levels as they began executing contracts entered during 2021. Margins were further strengthened by:

  • revenues generated by owned solar assets during the peak production months of the third quarter, and:
  • iSun’s new Professional Services revenue stream which is not impacted by material pricing or labor constraints.
  • iSun is confident that they have moved past the challenges of the first half of the year and anticipate more consistent margins and improved cash flow through the end of the year.

iSun’s Commercial and Industrial project backlog on September 30, 2021, was $80.7 million. This does not include the additional C&I backlog of $9.6 million obtained with the acquisition of SunCommon. Additionally, SunCommon provides iSun with residential customer orders of $22.1 million.

iSun’s balance sheet remained strong at the end of Q3 2021. iSun’s cash position of $27.5 million on September 30, 2021, was strengthen by strong cash collections, evidenced by a decrease in Accounts Receivable from year end, and a revenue increase of $6.6 million over the year prior. iSun’s total debt increased to $13.9 million at the end of the third quarter 2021. Total debt includes $2.0 million on iSun’s revolving line of credit used to support working capital, $1.9 million of long-term debt that is supported by recurring revenue generated by owned solar assets, and $10 million in long-term debt that supports the SunCommon acquisition, which closed in the fourth quarter of this year.

Outlook
The growth of iSun’s C&I project backlog combined with strong residential customer demand, ongoing Utility project development and the government’s recent investments in EV infrastructure provides an optimistic outlook for iSun’s 2022 revenue growth. iSun will provide 2022 Revenue Guidance on Thursday, November 18, 2021, prior to market opening.

iSun’s PALM™ Electric Vehicle Chargers Selected for Wisconsin Charging Installation

On November 4, 2021, iSun, Inc. (NASDAQ: ISUN) announced that its iSun’s PALM™ solar-powered EV charging system has been selected by an undisclosed party (‘The Partner’) for a Wisconsin commercial EV charging installation.

HIGHLIGHTS:

  • Project anticipated to be the first of several installations of iSun’s Mobility Platform for the Partner
  • Signifies iSun’s successful expansion into new geographic markets
  • Marks iSun’s 50th commercial EV charging installation
  • Illustrates the EV charging platform’s utility, value to commercial customers
  • The Mobility™ Platform leverages iSun’s experience as one of the largest Solar EPC’s in the US to eliminate barriers to EV adoption. Offered in a grid-tied (PALM™) or stand-alone (ROAM™) configuration that generates and stores its own clean electricity to power electric vehicles (‘EV’s), iSun’s Mobility™ Platform is a highly customizable, modular EV charging solution that can easily be tailored to the needs of any specific project, customer or EV, including Class 8 EV trucks. Equipped with iSun’s proprietary AmpUp™ app and software, iSun Mobility™ Platforms include complimentary support from iSun’s Mobility™ Team, who manage all aspects of the system on the owner’s behalf. The Partner’s configuration accommodates 6 vehicles, and comes equipped with under-canopy LED lighting, 2 EV chargers preloaded with iSun’s proprietary software and comes equipped with the iOS dashboard, enabling complimentary monitoring by iSun’s mobility team. The system is powered by 40 72-cell bi-facial solar modules, and is configured for installation on helical piles, allowing for fast installation and relocation should the need arise.

“Our experience installing and maintaining over 50 EV charging stations gives us a customer-centric view of the challenges associated with EV charging solutions,” commented Jeff Peck, iSun’s Chief Executive Officer. “ROAM™ and PALM™ carports address many of the pain-points often associated with EV charging station ownership, including ease of installation, durability, and ongoing management, maintenance, and support. We’re seeing more interest in Mobility Platforms tailored for class-8 vehicle use, which is promising for the future.”

iSun Inc. Announces Multiple Project Awards in Maine

On October 20, 2021, iSun, Inc. (NASDAQ: ISUN) announced that it has been awarded contracts for Solar Engineering, Procurement and Construction (“EPC”) services across three separate projects in Maine. Once complete, the projects will yield over 20mw of solar production; Combined, the contract values exceed $6.7 million.

HIGHLIGHTS:

  • Portfolio award signifies iSun’s successful execution of its organic growth strategy identified in its recent investor presentation.
  • $6.7 million portfolio highlights iSun’s ability to enter new geographic markets and build new customer relationships
  • Awards illustrate iSun’s 50-year legacy, experience bringing complex projects on-line on time and on-budget.
  • The award reflects iSun’s progress towards its previously stated growth objectives. First announced in late 2019, iSun’s growth strategy highlighted the specific steps the organization would take to accelerate the nation’s transition to solar energy across all sectors. This award is congruent with one of the three core pillars of this strategy – the organic growth of its Industrial and Utility EPC business throughout New England.

“This award reflects the progress we’ve steadily been making against our three-pronged strategy for growth,” said Jeffrey Peck, Chairman and Chief Executive Officer of iSun. “Equally important, these contracts reflect our ability to successfully navigate the market conditions affecting the solar EPC landscape,” continued Peck. “As stated previously, we’re not immune to the challenges COVID has created within the Solar EPC operating environment. iSun however, is not like most Solar EPCs. We’ve over 50 years of experience managing projects of similar scale and complexity, in similar climates. Such experience affords iSun a tremendous advantage when trying to reconcile increased demand with limited labor and materials, as evidenced by our ability to execute on projects like these.”

ISUN stock technical analysis

ISUN stock chart on November 18, 2021.

ISUN is currently trading near the lower end of its 52-week range, which is not a good sign. Certainly not because the S&P500 Index is trading near new 52 week highs at the moment. The short-term trend is negative, as is the long-term trend. There should be more interesting stocks out there. ISUN has a bad technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 7.92, a stop order could be placed below this zone. Click here to sign up for email alerts on when ISUN stock is a good entry.

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