SALT LAKE CITY, May 6, 2021 /PRNewswire/ -- CleanSpark, Inc.
(Nasdaq: CLSK) (the "Company"), an advanced software and controls
technology solutions company, focused on solving modern energy
challenges, today reported results for the three and six months
ended March 31, 2021.
CleanSpark Reports Net income For Second Quarter of $7.4 million or $0.28 basic earnings per share.
The Company's Quarterly Report on Form 10-Q and accompanying
unaudited interim financial statements are available at www.sec.gov
and the Company website at
https://ir.cleanspark.com/sec-filings/.
As previously announced, the Company will be holding its second
quarter 2021 live virtual earnings presentation and business update
for investors and analysts on May 7,
2021 at 8 a.m.
PST/11 a.m. EST.
To participate in our virtual meeting, please visit:
https://globalmeet.webcasts.com/starthere.jsp?ei=1408452&tp_key=56b26c1000
This URL can be used to access the live event or to watch the
recorded version. A transcription of the event will be available on
our website after the event.
Financial Highlights
Three months ended March 31,
2021
- CleanSpark more than doubled its comparable quarterly revenues,
with three-month revenues of $8.1
million, an increase of $4.4
million or 122% from $3.6
million for the same prior year period.
- Net income for the three months ended March 31, 2021 was $7.4
million or $0.28 basic
earnings per share and $0.22
fully-diluted earnings per share compared to a loss of $(5.8) million or $(1.13) basic and diluted earnings per share for
the same prior year period, an improvement of $1.41 basic earnings per share and $1.35 fully-diluted earnings per share.
- Adjusted EBITDA, a non-GAAP term, resulted in a non-GAAP net
income for the three months ended March 31,
2021 of $1.7 million or
$0.06 basic earnings per share and
$0.05 fully-diluted earnings per
share, compared to a loss of $(1.3)
million or $(0.26) basic and
diluted earnings per share for the same prior year period, an
improvement of $0.32 basic earnings
per share and $0.31 fully-diluted
earnings per share.
Six months ended March 31,
2021
- CleanSpark more than doubled its comparable six-month revenues,
with six-month revenues of $10.4
million, an increase of $5.7
million or 124% from $4.6
million for the same prior year period.
- Net income for the six months ended March 31, 2021 was $0.2
million or $0.00 basic
earnings per share and $0.00
fully-diluted earnings per share compared to a loss of $(7.7) million or $(1.56) basic and diluted earnings per share for
the same prior year period, an improvement of $1.56 basic earnings per share and $1.56 fully-diluted earnings per share.
- Adjusted EBITDA, a non-GAAP term, resulted in a non-GAAP net
income for the six months ended March 31,
2021 of $1.0 million or
$0.04 basic earnings per share and
$0.03 fully-diluted earnings per
share, compared to a loss of $(2.95)
million or $(0.60) basic and
diluted earnings per share for the same prior year period, an
improvement of $0.64 basic earnings
per share and $0.63 fully-diluted
earnings per share.
Bitcoin Mining Production
- In the quarter ended March 31, 2021, the Company produced
more than 144 Bitcoins, and has produced an aggregate of 241
Bitcoins since acquiring its mining operations on December 10,
2021 through May 4, 2021.
Balance Sheet Highlights as of March
31, 2021
Assets:
- Cash: $157.2 Million
- Digital Currency: $5.7 Million,
or 115.2 Bitcoin
- Total Current assets: $178.5
Million
- Total Assets: $292.6 Million
Liabilities and Stockholders' equity:
- Current Liabilities: $7.3
Million
- Total Liabilities: $8.9
Million
- Total Stockholders' Equity: $283.7
Million
Working capital
We had working capital of $171.1
million as of March 31, 2021
compared to $2.9 million as of
September 30, 2020, an increase of
$168.2 million.
Operational Highlights - Quarter ended March 31, 2021
- In March 2021, the Company closed
an underwritten public offering and received gross proceeds of
$200 million, before deducting
underwriting expenses and fees. This has been a catalyst to create
significant growth. We have focused a large portion of the capital
to expand our Bitcoin mining operations along with supporting our
expanded sales and marketing initiatives for our Energy
business.
- Our project to add 30MW of additional power to support
additional CleanSpark Bitcoin mining operations is ongoing. Upon
completion of the project, this will bring the total power
available for mining and data centers for CleanSpark subsidiaries
from 20MW to 50MW. The capacity increase is underway and is
expected to be complete by summer 2021. In addition to the 30 MW of
additional power to be delivered by the local utility, CleanSpark
expects to subsequently add renewable energy generating assets and
energy storage to the site, which will be operated by the Company's
patented mPulse controls.
- We have seen rapid growth in our Electric Vehicle (EV) charging
initiative, and we now have 11 Companies that are using our OpenADR
software solutions to aid in load management for EV charging
stations and balancing the impact the increased power demand has on
the traditional grid.
- We implemented new sales and marketing initiatives resulting in
increased sales and contracted backlog. Contracted backlog consists
of executed and binding contracts that will result in future
delivery of products and services. As of March 31, 2021, our contracted backlog was
$21.6 million. This backlog has
continued to grow as we further expand our sales efforts and as of
May 6, 2021, our contracted backlog
was $24.5 million.
Parties interested in learning more about CleanSpark products
and services are encouraged to inquire by contacting the Company
directly at info@cleanspark.com or visiting the Company's website
at www.cleanspark.com.
Investors are encouraged to contact the Company
at ir@cleanspark.com, or by visiting the Company's
website.
About CleanSpark:
CleanSpark, Inc., a Nevada corporation, is in the
business of providing advanced software, controls, and technology
solutions to solve modern energy challenges. CleanSpark has a suite
of software solutions that provides end-to-end microgrid energy
modeling, energy market communications, and energy management
solutions. CleanSpark's offerings consist of intelligent energy
monitoring and controls, intelligent microgrid design software,
middleware communications protocols for the energy industry, energy
system engineering, custom hardware solutions, microgrid
installation and implementation services, traditional data center
services and software consulting services.
The Company and its subsidiaries also own and operate a fleet of
Bitcoin miners at its facility outside
of Atlanta, Georgia.
For more information about the Company, please visit the
Company's website
at https://www.cleanspark.com/investor-relations .
Non-GAAP Financial Measures
Management believes that the use of adjusted earnings before
interest, taxes, depreciation and amortization, or adjusted EBITDA,
is helpful for an investor to assess the performance of the
Company. The Company defines adjusted EBITDA as income (loss)
attributable to common stockholders before interest, taxes,
depreciation, amortization, impairment of long-lived assets,
financing costs, stock-based compensation expense, other non-cash
expenses, and expenses related to discontinued operations.
Adjusted EBITDA and Adjusted EPS is not a measurement of
financial performance under generally accepted accounting
principles in the United States,
or GAAP. Because of varying available valuation methodologies,
subjective assumptions and the variety of equity instruments that
can impact a company's non-cash operating expenses, CleanSpark
management believes that providing a non-GAAP financial measure
that excludes non-cash and non-recurring expenses allows for
meaningful comparisons between the Company's core business
operating results and those of other companies, as well as
providing the Company with an important tool for financial and
operational decision making and for evaluating its own core
business operating results over different periods of time.
The Company's
adjusted EBITDA measure may not provide information that is
directly comparable to that provided by other companies in its
industry, as other companies in its industry may calculate non-GAAP
financial results differently, particularly related to
non-recurring, unusual items. The Company's adjusted EBITDA is not
a measurement of financial performance under GAAP, and should not
be considered as an alternative to operating income or as an
indication of operating performance or any other measure of
performance derived in accordance with GAAP. CleanSpark management
does not consider adjusted EBITDA to be a substitute for, or
superior to, the information provided by GAAP financial
results.
|
|
|
Three Months
Ended
|
|
|
March 31,
2021
|
|
March 31,
2020
|
Net Income/(Loss)
attributable to shareholders (US GAAP)
|
$
|
7,222,535
|
$
|
(5,815,098)
|
Less: Depreciation,
amortization and other non-cash items:
|
|
|
|
|
Depreciation and
amortization
|
|
2,147,834
|
|
674,587
|
Stock based
compensation
|
|
849,015
|
|
273,931
|
Interest, financing
charges, non-cash amortization of debt discounts
|
|
28,382
|
|
1,891,283
|
Unrealized
(gain)/loss on equity security
|
|
(343,000)
|
|
210,000
|
Unrealized
(gain)/loss on equity security
|
|
(8,400,629)
|
|
1,441,763
|
Non-cash amortization
of right of use assets
|
|
154,596
|
|
10,995
|
Total:
|
$
|
(5,563,803)
|
$
|
4,502,559
|
|
|
|
|
|
Non-GAAP Adjusted
EBITDA (after elimination of stock based and other non-cash
expenses)
|
$
|
1,658,732
|
$
|
(1,312,539)
|
|
|
|
|
|
Weighted average
common shares outstanding - basic
|
|
25,925,259
|
|
5,135,802
|
Loss per common share
- basic
|
$
|
0.06
|
$
|
(0.26)
|
Weighted average
common shares outstanding - diluted
|
|
32,678,863
|
|
5,135,802
|
Loss per common share
- diluted
|
$
|
0.05
|
$
|
(0.26)
|
|
|
Six Months
Ended
|
|
|
March 31,
2021
|
|
March 31,
2020
|
Net Income/(Loss)
attributable to shareholders (US GAAP)
|
$
|
55,005
|
$
|
(7,731,352)
|
Less: Depreciation,
amortization and other non-cash items:
|
|
|
|
|
Depreciation and
amortization
|
|
3,226,263
|
|
1,381,069
|
Stock based
compensation
|
|
5,199,658
|
|
910,200
|
Interest, financing
charges, non-cash amortization of debt discounts
|
|
29,721
|
|
3,451,598
|
Unrealized
(gain)/loss on equity security
|
|
(269,500)
|
|
(158,868)
|
Unrealized
(gain)/loss on equity security
|
|
(7,380,135)
|
|
(824,891)
|
Non-cash amortization
of right of use assets
|
|
166,460
|
|
21,726
|
Total:
|
$
|
972,466
|
$
|
4,780,834
|
|
|
|
|
|
Non-GAAP Adjusted
EBITDA (after elimination of stock based and other non-cash
expenses)
|
$
|
1,027,471
|
$
|
(2,950,518)
|
|
|
|
|
|
Weighted average
common shares outstanding - basic
|
|
25,925,259
|
|
5,135,802
|
Loss per common share
- basic
|
$
|
0.04
|
$
|
(0.60)
|
Weighted average
common shares outstanding - diluted
|
|
32,678,863
|
|
5,135,802
|
Loss per common share
- diluted
|
$
|
0.03
|
$
|
(0.60)
|
Forward-Looking Statements:
This release contains forward-looking statements as defined in
the Private Securities Litigation Reform Act of 1995, including
statements regarding the Company's plans and expectations for
expansion of its energy initiatives, deployment of miners, the
growth of the facility and other statements regarding the
expectations, beliefs, plans, intentions, and strategies of the
Company. The Company has tried to identify these forward-looking
statements by using words such as "expect," "target," "anticipate,"
"believe," "could," "should," "estimate," "intend," "may," "will,"
"plan," "goal" and similar terms and phrases, but such words, terms
and phrases are not the exclusive means of identifying such
statements. Actual results, performance and achievements could
differ materially from those expressed in, or implied by, these
forward-looking statements due to a variety of risks, uncertainties
and other factors, including, without limitation: delays in
equipment and battery energy storage systems availability and
delivery, the successful deployment of energy solutions for
residential and commercial applications, the fitness of the
Company's energy hardware, software and other solutions for this
particular application or market, the expectations of future
revenue growth may not be realized, ongoing demand for the
Company's software products and related services, the impact of
global pandemics (including COVID-19) on the demand for our
products and services; and other risks described in the Company's
prior press releases and in its filings with the Securities and
Exchange Commission (SEC), including under the heading "Risk
Factors" in the Company's Annual Report on Form 10-K and any
subsequent filings with the SEC. You are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date hereof, and we undertake no obligation to
revise or update this press release (including any forward-looking
statements contained herein) to reflect events or circumstances
after the date hereof.
Contact - Investor Relations:
CleanSpark Inc.
Investor Relations
(801)-244-4405
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SOURCE CleanSpark, Inc.