Solar Alliance revenue grows 31% in 2022 to $4.8 million
May 02 2023 - 7:00AM
Solar Alliance Energy Inc. (‘Solar Alliance’ or the
‘Company’) (TSX-V: SOLR, OTC: SAENF), a leading solar
energy solutions provider focused on the commercial and utility
solar sectors, announces it has filed its audited financial results
for the quarter and year ended December 31, 2022. The Company’s
Financial Statements and related Management’s Discussion and
Analysis are available under the Company’s profile at
www.sedar.com.
“Solar Alliance continued to successfully
execute on our strategy as our team delivered solid revenue growth
during 2022,” said CEO Myke Clark. “Our transition to larger
commercial and utility projects has resulted in strong growth and a
substantial backlog of projects under contract, positioning us very
well for 2023 and beyond.”
“During 2022, Solar Alliance made significant
investments in our team, which resulted in a strong revenue growth
profile. As a direct result of our investment over the last year,
we have the ability to scale significantly with our current team.
We are also committed to increasing project margins and ensuring
our expenses are appropriate for our contracted project pipeline,
as we target to achieve profitability in the coming quarters.”
“In addition to the revenue growth achieved in
2022, we energized our two company-owned solar projects in New York
– a significant strategic milestone for Solar Alliance. As we look
ahead, we are currently pursuing corporate opportunities to augment
our organic growth profile, in circumstances where opportunities
are both strategically and economically attractive. We believe our
focused strategy has created the foundation for a growing,
sustainable company that offers a unique investment opportunity in
the renewables sector, and we are increasingly confident in the
road ahead,” concluded Clark.
Key financial highlights for
2022
- Revenue grew 31% year-over-year to
$4,825,984 (2021 - $3,666,383) for the year ended December 31,
2022, as the company grew its commercial and utility solar
business.
- Cost of sales of $4,371,698 (2021 -
$3,002,801) resulting in a gross profit of $454,286 (2021 -
$663,582).
- Cash balance of $650,061 (2021 -
$2,169,258) and a restricted cash balance of $471,331 (2021 – Nil),
as of December 31, 2022.
- Customer deposits and deferred
revenue of $399,069 (2021 - $46,424), the result of one large
project that commenced in 2022 and completed in 2023.
- A net loss of $2,746,914 (2021 -
$448,864) as the Company continued to make investments in its
growing team and project portfolio. The change was driven in part
by increased headcount as the Company continues to build its team
to take advantage of opportunities for continued growth through
larger projects. The Company also experienced increased one-time
costs related to the New York operating solar projects and
corporate development initiatives.
- Cash used in operating activities
was $1,484,220 (2021 - $3,635,232).
Key business highlights for
2022
- Contract with U.S. Army
Corps of Engineers. On September 20, 2022, the Company
announced it signed a contract with the U.S. Army Corps of
Engineers Nashville District to install a solar system at the Lake
Cumberland Resource Manager’s Office and Maintenance Facility
located in Somerset, Kentucky. The Project consists of a
52-kilowatt (“kW”) roof mount solar array and a 51-kW carport solar
array.
- 500-kilowatt solar project
for LG&E and KU in Kentucky completed. On July 27,
2022, the Company announced it has completed construction of a
500-kW solar project for Louisville Gas and Electric and Kentucky
Utilities Company. The contract for this project includes an option
for LG&E and KU to select Solar Alliance to build an additional
500-kW system at the same location.
- Construction substantially
completed at 1-MW Knoxville Utilities Board project. The
Company signed a contract on February 22, 2022, with Knoxville
Utilities Board (“KUB”), an independent agency of the City of
Knoxville, for the design and installation of a 1-megawatt solar
project in Knoxville, Tennessee. KUB provides electric, natural
gas, water, wastewater, and fiber broadband services to more than
473,000 customers in Knoxville. The project builds on Solar
Alliance’s expanding utility customer project base, following
successful solar initiatives with other regional utilities. It also
builds on the company’s support program for utilities which
includes grant work, financial modeling, energy modeling, and EV
charger deployment. Construction was substantially completed in
2022.
- Construction commences at
526-kW Tennessee project. Construction continued at a
526-kW roof mount solar system at AESSEAL’s U.S. headquarters in
Rockford, Tennessee. Solar Alliance was contracted to design,
engineer and install the project.
- Project ownership target
achieved. On January 3, 2023, the Company announced it had
completed the construction of the Company’s first two solar
projects in New York and both are now in operation. A 298-kW
project and a 389-kW project were both energized at the end of 2022
and are now generating clean, renewable electricity under long-term
power purchase agreements with the local communities.
- U.S. President Biden signed
the Inflation Reduction Act (“IRA”). On August 16, 2022,
President Biden signed the largest climate bill in U.S. history.
For Solar Alliance and the Company’s customers, the new legislation
provides significant savings on solar systems through increased tax
credits that can reach as high as 60% of a project’s capital costs.
As a company that is 100% focused on the U.S. solar industry, Solar
Alliance is well positioned to continue its growth in the
commercial and utility solar sector, supported by the IRA.
Myke Clark, CEO
For more information: |
Investor RelationsMyke Clark,
CEO604-359-5178mclark@solaralliance.com |
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 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 in this press release include, but is not limited to
the ability to scale, increasing project margins, targeting
profitability and the Company offering a unique investment
opportunity in the renewables sector space. 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:
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 Company’s
solar projects, the targeting of larger customers, 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."
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