| Bron: pineapple energy
- Sales increased by 28% compared to the fourth quarter of 2022
- Gross profit increased by 60% compared to the fourth quarter of 2022
- Positive adjusted EBITDA and cash flow from continuing operations
- $7.6 million in cash, restricted cash and investments
MINNETONKA, Minnesota, May 11, 2023 (GLOBE NEWSWIRE) -- Pineapple Energy Inc. (NASDAQ: PEGY), a leading provider of renewable solar energy and backup power for households and small businesses, today announced financial results for the first quarter ended March 31, 2023.
Pineapple CEO Kyle Udseth commented, “The strength of our first quarter results – the first full quarter with SUNation in the fold – demonstrates the value of our acquisition strategy and demonstrates our ability to execute operationally as we integrate our businesses and driving accelerated performance. We are ahead of schedule on our organic growth initiatives, and more importantly, we reached the critical milestone of positive operating cash flow from continuing operations even earlier than we expected. This is an important step for Pineapple and is a testament to the strong performance of both our HEC and E-Gear businesses in Hawaii and our SUNation business in New York I would like to express my gratitude to all of our employees for their hard work in driving the business forward on this important point We are excited about our momentum and image. I look forward to reporting consistently positive results in the coming quarters."
First Quarter Business Highlights
- Strong operational numbers in all geographies (pro forma Q1 2023 vs pro forma Q1 2022)
- kW solves +60 %
- kW installed +52%
- 50% referral rate
- Battery connection at 40%
- Solid sequential growth in sales and gross profit; positive cash flows from continuing operations and positive pro forma adjusted EBITDA
- Strategy for "new construction" launched: SUNation awards the Baiting Hollow Development Group a contract for the equipment of sustainable houses
- E-Gear licensed proprietary energy management controller for energy storage manager Eguana
- Started a program at Suffolk County Community College for staff training
- The closing bell on the Nasdaq rang to celebrate the listing's one-year anniversary
- In April 2023, SUNation reached the milestone of 100 MW installed solar power since its inception.
First Quarter 2023 GAAP Results from Continuing Operations1
|1stTerm 2023||4eTerm 2022||1stTerm 20223|
|Income||$ 22.065.424||$ 17.183.617||$ 231.868|
|Gross Profit||$ 8.006.315||$ 5.005.122||$ 65.708|
|Operating costs||$ 10.155.841||$ 8.550.236||$ 1.599.718|
|Cash, Restricted Cash and Investments2||$ 7.610.981||$ 7.923.244||$ 10.506.026|
|Diluted loss per stock||($0,26||)||($0,06||)||($0,58||)|
1Including continuing operations and excluding discontinued operations.
2Including restricted cash and liquid investments of $4,190,567 as of March 31, 2023 and $4,463,089 as of December 31, 2022, intended for payment of contingent value rights.
3Since the decision to cease operations was taken on December 31, 2022, 1.stFigures for the quarter of 2022 have been adjusted to reflect continuing operations only.
Please note that due to the timing of the SUNation acquisition, Q4 2022 GAAP results include only 53 days of SUNation business.
Below are all figures for the first quarter of 2023, unless otherwise stated. All comparisons are for Q4 2022 unless otherwise stated. Comparisons with Q1 2022 GAAP results are not meaningful because Q1 2022 included only three days of meaningful operations.
Revenue of $22.1 million increased sequentially by 28% and gross profit of $8.0 million increased sequentially by 60% as the first quarter of 2023 represented SUNation's first full quarter of results.
Operating expenses of $10.2 million increased sequentially by 19%, driven by a full quarter of SUNation and an unfavorable fair value valuation of $825 thousand of SUNation's earnout consideration. Operating expenses in the fourth quarter of 2022 included one-time items related to the acquisition of SUNation.
Net loss of $2.6 million or $(0.26) per diluted share was sequentially higher due to a favorable $3.34 million fair value remeasurement of the contingent value liability in the fourth quarter of 2022.
As of March 31, 2023, cash, cash equivalents and restricted cash were $7.6 million. Of this amount, $4.2 million has been held as restricted cash and investments that can only be used for the existing CSI business and will be distributed to holders of Contingent Value Rights (“CVRs”).
Pro forma comparisons in the first quarter of 2023
To facilitate the analysis of the Company's operations, below is an unaudited pro forma presentation of the results as if the Company had completed the SUNation merger, the CSI merger and the HEC/E-Gear Asset acquisition from January 1, 2022.
|Three months ending March 31|
*Adjusted EBITDA is a non-GAAP financial measure. See “Pro Forma Results and Non-GAAP Financial Measures” and the Reconciliations in this press release for additional information.
Pro forma revenues increased by 60% due to a 52% increase in installed kW and an increase in connection rates for residential batteries.
Pro forma adjusted EBITDA increased by $1.25 million driven by higher EBITDA at both SUNation and HEC/E-Gear offset by a small increase in operating expenses.
The unaudited pro forma financial information above is not necessarily indicative of the consolidated results of operations of the combined company if the acquisition occurred early in the relevant period, nor is it necessarily indicative of future results of operations of the combined company. The above unaudited pro forma results have not been adjusted for the level of operating overheads required to support the forward-looking strategy, but instead include a higher cost structure based on existing operations and structure as plans to complete the CSI merger have been completed. . transaction. The unaudited pro forma financial information above includes adjustments to the amortization expense of intangible assets totaling $0 and $838,161 and excludes transaction costs totaling $2,020 and $2,698,548 for the three months ended March 31, 2023 and 2022, respectively.
For the full year 2023, the company reiterates its revenue guidance of $80 to $85 million, positive adjusted EBITDA and cash flow from operations in 2023.
Status of conditional value rights
The CVR liability as of March 31, 2023 was estimated at $7,652,714 and represents the estimated fair value at that date of the Legacy CSI Assets that will be distributed to CVR holders.
To Pineapple Energy
Pineapple is focused on growing leading local and regional solar, storage and energy services companies across the country. Our vision is to drive the energy transition through the base growth of solar energy in combination with battery storage. Our portfolio of brands (SUNation, Hawaii Energy Connection, E-Gear, Sungevity and Horizon Solar Power) provides homeowners and small businesses with an end-to-end product that includes solar energy, battery storage and grid services.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about future financial results, future growth or growth potential, future opportunities, future flexibility to pursue acquisitions, future cash flows and future earnings. . These statements are based on the Company's current expectations or beliefs and are subject to uncertainty and changing circumstances. Actual results may differ materially from those expressed or implied by the statements herein as a result of changes in economic, business, competitive or regulatory factors and other risks and uncertainties, including those disclosed in the documents the company has filed with the Securities and Exchange Commission. The forward-looking statements in this press release speak only as of the date of this press release. The Company undertakes no obligation to update or revise these forward-looking statements for any reason, except as required by law.
|ANANAS ENERGIE INC.|
|SHORTENED GROUP BALANCE SHEETS|
|31. mars||31 december|
|Cash and cash equivalents||$||1.920.414||$||2.187.540|
|Limited liquid assets||3.672.510||3.068.938|
|Accounts receivable less accounts receivable|
|credit losses of $112,581 and $108,636 respectively||6.118.196||5.564.532|
|Employee retention credit||—||1.584.541|
|Claims against close relatives||76.847||116.710|
|Costs paid up front||1.663.536||2.152.058|
|Costs and estimated revenues outside billing||507.564||777.485|
|Other current assets||634.095||634.362|
|Current assets held for sale||1.301.823||1.154.099|
|TOTAL REVIEW ASSETS||23.593.003||25.961.524|
|PROPERTY, INSTALLATIONS AND EQUIPMENT, net||1.473.464||1.190.932|
|Right of use for operational leasing of assets||4.672.439||4.166.838|
|Intangible assets, net||19.280.111||20.546.810|
|Other assets, net||12.000||12.000|
|Fixed assets held for sale||2.264.810||2.271.533|
|TOTAL OTHER ASSETS||46.775.210||47.543.031|
|LIABILITIES AND SHARE CAPITAL|
|Earned Compensation and Benefits||737.793||859.774|
|Operational Lease Responsibility||322.378||220.763|
|Other accruals and deferred income||1.328.544||1.238.777|
|Debts to related parties||549.720||2.181.761|
|Income tax is due||1.318||1.650|
|Refundable customer deposits||2.752.156||4.285.129|
|Invoices next to costs and estimated income||3.104.435||2.705.409|
|Current part of the loan to be paid off||371.264||346.290|
|Current portion of outstanding loans - related party||5.413.170||5.339.265|
|Current liabilities held for sale||1.069.199||1.161.159|
|TOTAL CURRENT LIABILITIES||23.398.120||25.934.158|
|Loans payable and associated interest||3.444.316||3.138.194|
|Loans and interest due from related parties - related parties||4.731.778||4.635.914|
|Operational Lease Responsibility||4.379.432||3.961.340|
|Conditional value rights||7.652.714||7.402.714|
|Non-current liabilities held for sale||262.455||250.875|
|TOTAL LONG-TERM LIABILITIES||23.445.695||21.539.037|
|OBLIGATIONS AND COMMITMENTS (Note 9)|
|Convertible preferred stock, par value $1.00 per stock;|
3,000,000 authorized shares; 28,000 issued and outstanding shares
|common stock, par value $0.05 per stock; 75,000,000 authorized shares;|
|respectively 9,948,836 and 9,915,586 issued and outstanding shares.||497.442||495.779|
|Additional paid-up capital||46.088.941||45.798.069|
|Accumulated Other Comprehensive Income (Loss)||13.983||(10.422||)|
|TOTAL SHARE CAPITAL||24.997.862||27.222.292|
|TOTAL LIABILITIES AND SHARE CAPITAL||$||71.841.677||$||74.695.487|
|ANANAS ENERGIE INC.|
|CONDENSED CONSOLIDATED STATEMENTS OF ACTIVITIES AND COMPLETE LOSS|
|Three months ending March 31|
|Cost of sales||14.059.109||166.160|
|Sales, general and administrative expenses||8.062.123||273.750|
|Remeasurement of the fair value of SUNation's earnout fee||825.000||—|
|Total operating costs||10.155.841||1.599.718|
|Other income (expenses):|
|Investment and other income (expenses)||19.533||(5.144||)|
|Profit on the sale of assets||244.271||—|
|Remeasurement of contingent value rights to fair value||(250.000||)||—|
|Interest and other charges||(458.218||)||(350.382||)|
|Other costs, net||(444.414||)||(355.526||)|
|Net loss before income tax||(2.593.940||)||(1.889.536||)|
|Income tax costs||5.732||—|
|Net loss from continuing operations||(2.599.672||)||(1.889.536||)|
|Net result from discontinued operations after tax||44.683||5.902|
|Other unrealized gains (losses), after tax:|
|Unrealized gains (losses) on available-for-sale securities||24.405||(17.067||)|
|Total other comprehensive income (loss)||24.405||(17.067||)|
|Basic net loss per share:|
|Diluted net loss per share:|
|Weighted average base shares outstanding||9.919.650||3.231.461|
|Weighted average shares outstanding with dilution||9.919.650||3.231.461|
|ANANAS ENERGIE INC.|
|CONDENSED CONSOLIDATED CASH FLOW STATEMENTS|
|Three months ending March 31|
|CASH FLOW FROM OPERATING ACTIVITIES:|
|Net result from discontinued operations after tax||44.683||3.874|
|Net loss from continuing operations||(2.599.672||)||(1.887.508||)|
|Adjustments to reconcile net loss to net cash used in operating activities:|
|Depreciation and amortization||1.377.023||358.230|
|Remeasurement of the fair value of the earn-out consideration||825.000||—|
|Remeasurement of contingent value rights to fair value||250.000||—|
|Profit on the sale of assets||(244.271||)||—|
|Costs for interest and growth||458.218||336.405|
|Movements in assets and liabilities:|
|Prepaid income tax||(332||)||—|
|Other assets, net||2.274.326||285.880|
|Earned Compensation and Benefits||(121.982||)||(502.869||)|
|Other accruals and deferred income||(1.129.141||)||(1.091.411||)|
|Net cash flow from (used in) operating activities||47.440||(5.055.650||)|
|Net cash flow (used in) from operating activities – discontinued operations||(173.019||)||13.209|
|Net cash used for operating activities||(125.579||)||(5.042.441||)|
|CASH FLOW FROM INVESTING ACTIVITIES:|
|Acquisition of a business, minus cash acquired||—||(10.256.865||)|
|Proceeds from the sale of investments||673.114||49.194|
|Net cash flow from (used in) investing activities||343.457||(10.207.916||)|
|Net cash used in investing activities – discontinued operations||(3.681||)||—|
|Net cash flow from (used in) investing activities||339.776||(10.207.916||)|
|CASH FLOW FROM FINANCING ACTIVITIES:|
|Loan against working capital payable||—||150.000|
|Take out loans that must be paid||226.361||—|
|Payments on loan principal due||(97.821||)||(4.500.000||)|
|Payments related to share issue costs||—||(2.699.370||)|
|The proceeds from the issue of preference shares upon closing of the private placement||—||32.000.000|
|Purchase of common shares||(6.291||)||—|
|Net liquidity from financing activities||122.249||24.950.630|
|NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH||336.446||9.700.273|
|CASH, CASH EQUIVALENTS AND LIMITED CABINS AT THE BEGINNING OF THE PERIOD||5.256.478||18.966|
|CASH, CASH EQUIVALENTS AND LIMITED CASH AT THE END OF THE PERIOD||$||5.592.924||$||9.719.239|
|ADDITIONAL CASH FLOW INFORMATION:|
|income tax paid||$||332||$||—|
|NON-CASH FINANCING AND INVESTING ACTIVITIES:|
|Issue of common stock to convert related party debt||—||2.350.000|
|Issue of ordinary shares for conversion of working capital certificates||—||500.000|
|Issue of common shares to acquire HEC and E-Gear||—||12.781.234|
|Effect of reverse capitalization||—||1.594.779|
|Operating right-of-use assets acquired in exchange for lease liabilities||596.093||127.902|
Pro forma results and non-GAAP financial measures
This press release contains unaudited pro forma information that represents the results of operations as if the company had completed the CSI merger, the HEC and E-Gear Asset acquisitions and the SUNation acquisition as of January 1, 2022. The unaudited pro forma financial information presented in this press release is not necessarily indicative of the consolidated results of operations of the combined company if the acquisitions were made early in the period, nor is it necessarily indicative of future results of operations for the merged company.
For the three months ended March 31, 2023 and 2022, the unaudited pro forma financial information includes adjustments to the amortization expense of intangible assets totaling $0 and $838,161, respectively, and excluding transaction costs totaling $2,020 and $2,698,548.
This press release also contains non-GAAP financial measures that differ from financial measures calculated in accordance with United States Generally Accepted Accounting Principles ("GAAP").
Adjusted EBITDA is a non-GAAP financial measure provided in this press release and is a net loss, calculated on a pro forma basis in accordance with GAAP, adjusted for pro forma interest, income taxes, depreciation, amortization, stock compensation, gain on the sale of assets and non-cash fair value adjustments, as described in the reconciliations below in this press release.
These non-GAAP financial measures are presented because the Company believes they are useful indicators of its operating performance. Management uses these objectives primarily as objectives for the company's operating results and for planning purposes, including preparing the company's annual operating plan and financial projections. The Company believes these measures are useful to investors as additional information and because they are commonly used by analysts, investors and other interested parties to evaluate companies in the industry. The Company also believes that these non-GAAP financial measures are useful to management and investors as a measure of comparative operating results from period to period.
The non-GAAP financial measures presented in this announcement should not be considered alternative or superior to their respective GAAP financial measures, measures of financial performance or cash flow from operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP and should not be construed as suggesting that the Company's future results will not be affected by unusual or one-time events. In addition, these measures do not reflect certain cash needs, such as tax payments, debt service requirements, capital expenditures and certain other cash costs that may arise in the future. Adjusted EBITDA contains certain other limitations, including the inability to reflect our cash outflows, liquidity requirements for working capital needs, and cash costs replacing assets that are depreciated and amortized. In evaluating non-GAAP financial measures, you should be aware that the Company may incur costs in the future that are the same or similar to some of the adjustments in this presentation. The Company's presentation of non-GAAP financial measures should not be interpreted as suggesting that its future results will not be affected by such adjustments. Management compensates for these limitations by relying primarily on the company's GAAP results in addition to using non-GAAP financial measures on an ancillary basis. The Company's definition of these non-GAAP financial measures is not necessarily comparable to other similarly titled titles by other companies due to different methods of calculation.
Reconciliation of non-GAAP to GAAP financial information
Reconciliation of pro forma net loss and pro forma adjusted EBITDA:
|Three months ending March 31|
|Pro forma net loss||$||(2.597.652||)||$||(2.634.695||)|
|The interest rate||(13.693||)||(2.625||)|
|Profit on the sale of assets||(244.271||)||-|
|FV revaluation of contingent value rights||250.000||-|
|FV revaluation of the earnout award||825.000||-|
|Pro forma adjusted EBITDA||$||372.802||$||(880.910||)|