Solar Alliance Q1 financial results show continued revenue increase and backlog growth
May 26 2022 - 6:00AM
Solar Alliance Energy Inc. (‘Solar Alliance’ or the
‘Company’) (TSX-V: SOLR, OTCQB: SAENF) announces it has
filed its unaudited financial results for the three months ended
March 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.
“The Solar Alliance team continues to execute on
our growth strategy as we start to build out the large backlog of
projects we have developed over previous quarters,” said CEO Myke
Clark. “The transition to larger, higher revenue projects is paying
dividends as our backlog now exceeds $4,900,000 of contracted
projects. Construction on several of these is now underway and we
anticipate completing the construction of this current backlog this
year. This growing backlog and revenue stream is combined with the
portfolio of solar projects we currently own and will operate in
New York, generating long term recurring revenue once they are
completed later this year. As we build those projects in New York,
we continue to pursue larger project pipeline opportunities given
the significant long term value we see in owning and operating
solar projects,” concluded Clark.
Financial highlights
- Contracted project backlog grew to
approximately $4,900,000. The Company expects this current backlog
to be constructed in 2022 while the Company continues to add
additional backlog through its sales channels.
- Revenue grew to $663,269 for the
three months ended March 31, 2022 (Q1, 2021 - $582,223) as the
company accelerated its transition to larger, higher revenue solar
projects.
- Cost of sales for the period was
$531,567, resulting in a gross profit of $131,702 or 20%. This
represents strong margin improvement compared to the same period in
2021, with cost of sales of $582,223, resulting in a gross margin
of $12,924.
- An operating loss of $693,267 (Q1,
2021 - $553,401) as the Company continued to make investments in
its growing team and project portfolio.
- Cash used in operating activities
decreased from $1,323,352 in Q1 2021 to $927,620, an improvement of
30%.
Business highlights
- Contract for 1 MW Project
with Knoxville Utilities Board Signed – On February 22,
2022, Solar Alliance announced it has signed a contract with
Knoxville Utilities Board (“KUB”), an independent agency of the
City of Knoxville, for the design and installation of a 1 megawatt
(“MW”) solar project in Knoxville, Tennessee. KUB provides
electric, natural gas, water, wastewater, and fiber broadband
services to more than 473,000 customers in Knoxville. Solar
Alliance will design, engineer, and install the 1-MW project, which
is scheduled to begin construction in April 2022 and is targeted
for completion in August 2022.
- The Company’s strategic
relationship with Boyd CAT, a regional Caterpillar dealer and
supplier of Cat® solar equipment, has insulated it from the severe
supply chain issues being experienced in the solar industry.
- Completed Acquisition of 389-kW Solar Project in New
York – On February 2, 2022, Solar Alliance announced
completed the acquisition of a 389-kW project in New York State
from Abundant Solar Power Inc. The project acquisition, first
announced on June 23, 2021, represents the second project Solar
Alliance will own and operate under a 25-year power purchase
agreement. A total of 687-kW of solar projects are now owned by the
Company and will contribute recurring revenue once they achieve
commercial operation.
- Contract for 526-kW Project with AESSEAL
Signed – On January 27, 2022, Solar Alliance announced it
has signed a contract with AESSEAL, a specialist in the design and
manufacture of mechanical seals and support systems, for a 526-kW
roof mount solar system at AESSEAL’s U.S. headquarters in Rockford,
Tennessee. Solar Alliance will design, engineer and install the
project, which is scheduled to begin construction in April and is
targeted for completion by the end of October 2022.
- Solar Alliance Commenced Trading on OTCQB Market in the
United States – On January 24, 2022, Solar Alliance
announced that it has qualified for trading on the OTCQB Venture
Market in the United States operated by the OTC Markets Group Inc.
and the Company’s common shares will commence trading today on the
OTCQB under the symbol “SAENF.” The Company’s common shares
will continue to trade on the TSX Venture Exchange.
Myke Clark, CEO
For more information: |
Investor RelationsMyke Clark,
CEO416-848-7744mclark@solaralliance.com |
About Solar Alliance Energy Inc.
(www.solaralliance.com)
Solar Alliance is an energy solutions provider focused on
residential, commercial and industrial solar installations. The
Company operates in Tennessee, Kentucky, North/South Carolina and
Illinois and has an expanding pipeline of solar projects. Since it
was founded in 2003, the Company has developed $1 billion of
renewable energy projects that provide enough electricity to power
150,000 homes. Our passion is improving life through ingenuity,
simplicity and freedom of choice. Solar Alliance reduces or
eliminates customers' vulnerability to rising energy costs, offers
an environmentally friendly source of electricity generation, and
provides affordable, turnkey clean energy solutions.
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:
uncertainties related to the ability to raise sufficient capital,
changes in economic conditions or financial markets, litigation,
legislative or other judicial, regulatory and political competitive
developments and technological or operational difficulties.
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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