Toronto, Canada & Knoxville, Tennessee, August 24, 2023 – Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR), a leading solar energy solutions provider focused on the commercial and industrial solar sectors, announces it has filed its unaudited financial results for the three- and six-month period ended June 30, 2023. The Company’s Financial Statements and related Management’s Discussion and Analysis are available under the Company’s profile at www.sedarplus.ca.
“Solar Alliance delivered 51% year-over-year quarterly revenue growth during the second quarter of 2023,” said CEO Myke Clark. “The combination of revenue to date, the contracted backlog of projects that is expected to be built before the end of the year and significant work-in-process support another strong year of growth.”
“Just as importantly, the gross margin of 35% reflects the process improvements and disciplined approach we are taking to project execution. The stronger gross margin contributed to the first positive comprehensive income result in the Company’s commercial solar history. Solar Alliance has been clear in our signal to the market that a key focus was targeting profitability and we are pleased to see significant progress made towards this goal.”
Financial highlights
- Revenue for the three months ended June 30, 2023, was $1,454,213 an increase of 51% from $964,548 in the same period in 2022 as the Company continued to increase both the number and the size of projects in its construction pipeline.
- Cost of sales of $951,052 (Q2 2022: $891,789) resulting in a gross profit of $503,161 (Q2, 2022: $72,759) and a gross profit margin of 35% (Q2 2022: 8%).
- Total expenses for the period were $754,339, a 16% reduction from $897,825 in the comparable period in 2022, as the Company continues to identify and implement overhead efficiencies to support its profitability target, while experiencing continued revenue growth.
- The Company reported $197,311 in positive comprehensive income (Q2 2022: comprehensive loss of $440,918).
- Net loss for the quarter of $240,522, compared to a net loss of $208,304 in the comparable prior year period.
- Cash balance of $285,745 as of June 30, 2023.
- Contracted project backlog of approximately $7,200,000 as of June 30, 2023, supports continued revenue growth into 2024.
Business highlights
$1.47 million contract signed for project in Tennessee. On May 31, 2023, the Company announced it signed a contract for the design, engineering, and construction of a 565-kW commercial solar project for a manufacturing company in Tennessee. The project, with a $1.47 million capital cost, is scheduled to begin construction in Q3 2023 with completion targeted by the end of 2023.
Letter of Intent to acquire Canadian solar company. On May 18, 2023, the Company announced it entered into an arm's length Letter of Intent dated May 16, 2023, to acquire a growing, profitable Canadian solar company in what is expected to be a predominantly share-based transaction.
Sold 67% interest in New York community solar project. On June 21, 2023, the Company announced it sold a 67% interest in the Company's two operating solar projects in the state of New York for consideration of USD $973,360.72. Solar Alliance will maintain a 33% interest in the two projects, enabling the Company to continue to benefit from the economics of the project.
“This impressive level of growth sets stage for a strong finish to 2023 as we execute on our pipeline of contracted projects. Critically, revenue growth is occurring as we reduce costs and improve gross margins on projects. We continue to build a stable, growing company that is well positioned to take advantage of the current global shift to renewable energy,” concluded Clark.
Myke Clark, CEO