First positive comprehensive income result in the Company’s commercial solar history as contracted project backlog now totals $7.2 million
TORONTO and KNOXVILLE, Tenn., Aug. 24, 2023 (GLOBE NEWSWIRE) -- Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR), a leading solar energy solutions provider focused on the commercial and utility 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
About Solar Alliance Energy Inc. (www.solaralliance.com)
Solar Alliance is an energy solutions provider focused on the commercial, utility and community solar sectors. Our experienced team of solar professionals reduces or eliminates customers' vulnerability to rising energy costs, offers an environmentally friendly source of electricity generation, and provides affordable, turnkey clean energy solutions. Solar Alliance’s strategy is to build, own and operate our own solar assets while also generating stable revenue through the sale and installation of solar projects to commercial and utility customers. The Company currently owns two operating solar projects in New York and actively pursuing opportunities to grow its ownership pipeline. The technical and operational synergies from this combined business model supports sustained growth across the solar project value chain from design, engineering, installation, ownership and operations/maintenance.
Statements in this news release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute Forward-looking statements. The words “would”, “will”, “expected” and “estimated” or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different than those expressed or implied by such forward-looking information. Such factors include but are not limited to: the ability to complete the Company’s projects on schedule or at all; the continued benefit of the economics of the New York solar projects, satisfactory due diligence, the ability to settle the definitive agreement, obtain the approval of the TSX Venture Exchange and complete the proposed transaction to acquire the Canadian solar company on the terms as announced or at all; uncertainties related to the ability to raise sufficient capital; changes in economic conditions or financial markets; litigation, legislative or other judicial, regulatory, legislative and political competitive developments; technological or operational difficulties; the ability to maintain revenue growth; the ability to execute on the Company’s strategies; the ability to complete the Company’s current and backlog of solar projects; the ability to grow the Company’s market share; the high growth US solar industry; the ability to convert the backlog of projects into revenue; the expected timing of the construction and completion of the 872 KW Tennessee solar project; the targeting of larger customers; the ability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the construction sector, capital market conditions, restriction on labour and international travel and supply chains; potential corporate growth opportunities and the ability to execute on the key objectives in 2023. Consequently, actual results may vary materially from those described in the forward-looking statements.
“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
