Toronto, Canada and Knoxville, Tennessee, November 21, 2023 – Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR), a leading solar energy solutions provider focused on the commercial and industrial solar sector, announces it has filed its unaudited financial results for the three- and nine-month period ended September 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.
“The third quarter of 2023 was transformative for Solar Alliance as we delivered net income of $975,000 through responsible growth in the U.S. commercial solar sector,” said CEO Myke Clark. “Our strategic focus on larger, higher margin commercial solar projects, combined with diligent cost control, has resulted in stronger gross margins and the first profitable quarter in the Company’s commercial solar history. Solar Alliance has been clear in our signal to the market that our key focus was targeting profitability, and we are pleased to have achieved this significant milestone in Q3.”
“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. We have managed our contracted backlog, which is approximately $5.4 million, to a level that we feel allows rapid conversion to revenue while still maintaining our highest standards of execution. We remain committed to growing the Company with an emphasis on profitability and we believe our business plan and contracted backlog support this strategy,” concluded Clark.
Financial highlights
Net income for the three months ended September 30, 2023, of $975,712, compared to a net loss of $220,529 in the comparable prior year period.
- Revenue for the three months ended September 30, 2023, was $2,410,725 compared to $2,753,628 in the same period in 2022 reflecting the Company’s disciplined focus on larger, higher margin projects in its construction pipeline.
- Cost of sales of $922,934 (Q3, 2022: $2,185,366) resulting in a gross profit of $1,487,791 (Q3, 2022: $568,262).
- Total expenses for the period were $600,316, a reduction from $1,240,250 in the comparable period in 2022, as the Company continues to identify and implement overhead efficiencies.
- Cash balance of $400,923 as of September 30, 2023.
- Contracted project backlog of approximately $5,400,000 supports expected continued revenue growth into 2024.
Business highlights
Contracted project backlog of $5.4 million. The Company continued to add to its backlog of contracted projects in Q3 2023. This solar project backlog provides a strong foundation for growth during the balance of 2023 and into 2024. The backlog has been driven by the transition to larger commercial solar system sales and is backed by several key projects:
- Construction commenced on a 565 kilowatt (“kW”) commercial solar project for a manufacturing client in Tennessee announced on May 31, 2023. The project is currently targeted for completion by the end of 2023.
- Construction commenced on an 872-kW solar project in Tennessee announced on February 13, 2023, with a $1.8 million capital cost. Design and engineering on the project began in Q2 2023 with completion targeted by the end of 2023.
- Two projects, 250-kW and 299-kW, for a Tennessee client announced on July 10, 2023. The two projects, with a capital cost of $1.58 million, are scheduled to begin construction in Q4 2023 and are currently targeted for completion in Q1 2024.
Affiliate Program launched. In support of the Company’s organic growth strategy in the Southeast U.S., the Company announced the launch of the Solar Alliance Affiliate Program on September 12, 2023 (the “Affiliate Program”). The Affiliate Program provides independent sales organizations with access to branded marketing materials, design, engineering and installation management services. In return, the affiliates bring commercial solar opportunities to Solar Alliance. The Affiliate Program is initially focused on the Southeast U.S. market and has the potential to be expanded to additional regions in the U.S. Solar Alliance has signed the first Affiliate Agreement with Market Street Solar, a North Carolina-based company.
Large solar system sales. The Company continues to target larger customers for third-party solar system sales and installations, specifically for commercial and industrial customers. Solar Alliance’s strategy is to design, engineer and install commercial solar systems ranging in size up to several megawatts.
Corporate growth opportunities. Solar Alliance continues to source and assess acquisition opportunities that meet the Company’s criteria of profitability, market opportunity and strong management teams. The Company is also pursuing corporate opportunities to expand through partnerships, joint ventures or other initiatives.
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 of the Company to build and complete its backlog of solar projects, 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, including but not limited to those solar projects discussed in this news release,; 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.
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