Financial Performance - Revenue for Q3 2024 was $102,165 thousand, a decrease of 24% compared to $134,209 thousand in Q3 2023[15] - Gross profit for Q3 2024 increased to $25,376 thousand, compared to $14,150 thousand in Q3 2023, reflecting a significant improvement[15] - Operating expenses decreased to $20,852 thousand in Q3 2024 from $24,721 thousand in Q3 2023, a reduction of approximately 16%[15] - Net loss attributable to Shoals Technologies Group, Inc. was $267 thousand in Q3 2024, an improvement from a net loss of $9,828 thousand in Q3 2023[15] - The company reported a net income of $4,774 thousand for the nine months ended September 30, 2024, compared to $26,079 thousand for the same period in 2023[15] - Net income for the nine months ended September 30, 2024, was $16,309,000, a decrease of 37.9% compared to $26,079,000 for the same period in 2023[20] - The net income attributable to Shoals Technologies Group, Inc. for the nine months ended September 30, 2024, was $16.3 million, a decrease of 30.1% from $23.4 million in the same period of 2023[55] Assets and Liabilities - Total current assets decreased to $190.769 million as of September 30, 2024, down from $227.186 million at December 31, 2023, representing a decline of approximately 16%[13] - Cash and cash equivalents dropped to $11.106 million from $22.707 million, a decrease of about 51%[13] - Accounts receivable decreased to $95.301 million from $107.118 million, reflecting a decline of approximately 11%[13] - Inventory increased to $65.854 million, up from $52.804 million, indicating a rise of about 25%[13] - Total liabilities decreased to $256.105 million from $298.997 million, a reduction of approximately 14%[13] - Long-term debt, net of deferred financing costs, decreased to $141,750,000 as of September 30, 2024, from $179,445,000 on December 31, 2023, a reduction of 21.0%[49] - Total accrued expenses decreased to $12,865,000 as of September 30, 2024, from $22,907,000 on December 31, 2023, indicating a 43.9% reduction[43] Equity and Capital - Additional paid-in capital increased to $479.764 million from $470.542 million, reflecting a growth of approximately 2.6%[13] - Retained earnings rose to $90.761 million from $74.452 million, an increase of about 22%[13] - Total stockholders' equity as of September 30, 2024, was $545,196 thousand, reflecting an increase from $524,640 thousand as of September 30, 2023[19] - The company has a revolving line of credit of $141.750 million, significantly higher than the previous $40 million[13] - The company repurchased $25,331,000 of Class A common stock during the financing activities, indicating a commitment to returning value to shareholders[20] - On June 11, 2024, the company announced a share repurchase program authorizing the repurchase of up to $150 million of Class A common stock, with an estimated completion date of December 31, 2025[65] Cash Flow and Expenses - Net cash provided by operating activities was $66,400,000, slightly up from $65,508,000 in the prior year, indicating a growth of 1.4%[20] - Cash paid for interest decreased to $13,452,000 in 2024 from $17,380,000 in 2023, a reduction of 22.4%[22] - Interest expense decreased to $(3,088) thousand in Q3 2024 from $(5,899) thousand in Q3 2023, indicating improved financial management[15] - Amortization expense related to intangible assets was $1.9 million for the three months ended September 30, 2024, down from $2.0 million in 2023, a decline of 5.0%[42] Warranty and Litigation - The company reported a current portion of warranty liability at $34.743 million, up from $31.099 million, an increase of about 12%[13] - The company recorded warranty liability decrease to $15,374,000 in 2024 from $3,669,000 in 2023, reflecting a significant increase in warranty claims[20] - The company recorded warranty expense of $13,809,000 for the three months ended September 30, 2024, compared to $50,421,000 for the same period in 2023, a decrease of 72.6%[46] - The company is involved in ongoing litigation related to defective wire insulation, which may impact future financial results[72] - The company has filed a complaint against Prysmian for damages related to defective wire, seeking compensatory and punitive damages[72] - The company has consolidated multiple derivative lawsuits related to fiduciary duty claims against current and former officers and directors[76] Market and Future Outlook - The company faces risks related to potential project delays and macroeconomic factors, including high inflation and interest rates, which could impact future growth[9] - The company anticipates continued growth in the energy transition market, focusing on expanding its electrical balance of systems solutions[24] - Customer A accounted for 30.4% of revenue in 2024, down from 34.1% in 2023, indicating a diversification in revenue sources[31] Stock and Compensation - The company granted 1,447,831 restricted stock units (RSUs) during the nine months ended September 30, 2024, with grant date fair values ranging from $5.12 to $15.39 per unit[58] - The company recognized equity-based compensation of $1.3 million for the three months ended September 30, 2024, compared to $5.1 million for the same period in 2023[60] - As of September 30, 2024, the company had $15.7 million of unrecognized compensation costs expected to be recognized over a weighted average period of 1.9 years[60] - The company had 1,838,740 outstanding RSUs as of September 30, 2024, with a weighted average price of $13.13[59] Revenue Breakdown - Revenue from system solutions in Q3 2024 was $78.587 million, down 21% from $99.461 million in Q3 2023[82] - Revenue from components in Q3 2024 was $23.578 million, a decline of 32% compared to $34.748 million in Q3 2023[82] - Total revenue for Q3 2024 was $102.165 million, a decrease of 24% compared to $134.209 million in Q3 2023[82]

PORTLAND, Tenn., Oct. 14, 2024 (GLOBE NEWSWIRE) -- Shoals Technologies Group, Inc. (the "Company") (Nasdaq: SHLS) today announced that the Company will release its third quarter 2024 results before market open on Tuesday, November 12, 2024, to be followed by a conference call at 8:00 a.m. (Eastern Time) on the same day. Interested investors and other parties can access the live webcast through the Investor Relations section of the Company's website at https://investors.shoals.com. An archived replay of the ...

PORTLAND, Tenn., Sept. 30, 2024 (GLOBE NEWSWIRE) -- Shoals Technologies Group, Inc. ("Shoals"), a global leader in electrical balance of system ("EBOS") solutions for the energy transition market, announced today that it has further strengthened its executive team with two new additions to drive operational excellence. Kirsten Moen, newly appointed Chief Operations Officer, is an accomplished operations and manufacturing executive with extensive experience in leading organizations such as Eaton and Stanley ...

PORTLAND, Tenn., Sept. 05, 2024 (GLOBE NEWSWIRE) -- Shoals Technologies Group, Inc. ("the Company") (Nasdaq: SHLS), a global leader in electrical balance of system (EBOS) solutions for the energy transition market, announces financial highlights of its investor day, which was held today in Nashville, TN. Shoals' executive leadership team highlighted a proven track record of financial results, significant cash flow generation, a strong balance sheet and its strong position to achieve long-term (2027) financi ...

Core Viewpoint - Shoals Technologies Group, Inc. is currently facing significant challenges that have impacted its growth potential, but there are signs of improvement in the solar industry that could benefit the company in the long term [2][15]. Operational and Supply Chain Disruptions - The company has experienced a substantial decline in revenue in the first half of 2024, with 56% of planned installations facing delays of at least 6 months, resulting in a $40 million revenue push to the next year [3][12]. - Key factors contributing to project delays include permitting issues, growth in grid interconnection queues, supply chain disruptions, labor shortages, and elevated interest rates [3][5]. - Approximately 116 bans or impediments on utility-scale solar projects have been identified, with many implemented in the last year, complicating the permitting process [3][12]. - Recent regulatory changes, such as the Bureau of Land Management's new policy framework and New York's Office of Renewable Energy Siting, aim to streamline the permitting process, potentially improving project approvals by 2025 [3][7]. - The interconnection queue capacity reached 2.2 TW, with 94% representing renewables, indicating a need for major reforms to address delays [5][6]. - The U.S. Department of Energy has set a roadmap to reduce interconnection timelines to 12 months by 2030, which could positively impact the industry in the long run [6][7]. - The company is also focusing on international expansion, targeting high-growth markets such as Latin America, Australia, and Southern Europe, with an addressable market opportunity of 63 gigawatts [8][10]. Legal and Regulatory Challenges - Shoals is dealing with warranty remediation related to defective wire insulation, with potential liabilities ranging from $59.7 million to $184.9 million, impacting profitability [12][13]. - A shareholder lawsuit has arisen due to miscommunication regarding warranty liabilities, while the company is seeking compensation from its supplier, Prysmian Cables [13][14]. - Ongoing patent litigation has seen a favorable preliminary ruling for the company, suggesting that while legal challenges may dampen sentiment in the short term, they are unlikely to hinder long-term growth [14][15].

PORTLAND, Tenn., Sept. 03, 2024 (GLOBE NEWSWIRE) -- Shoals Technologies Group, Inc. ("Shoals") (Nasdaq: SHLS), a global leader in electrical balance of system ("EBOS") solutions for the energy transition market, announced today that it received a favorable legal ruling from the U.S. International Trade Commission ("ITC") in its patent infringement complaint against Voltage, LLC and related foreign entity ("Voltage"). On August 30, 2024, an Administrative Law Judge at the ITC issued an initial ruling finding ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they be ...

Shoals Technologies Group (SHLS) has been beaten down lately with too much selling pressure. While the stock has lost 11.9% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier. Here is How to Spot Oversold Stocks We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum o ...

Core Insights - Shoals Technologies Group (SHLS) reported quarterly earnings of $0.10 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, but down from $0.14 per share a year ago, representing an earnings surprise of 11.11% [1] - The company posted revenues of $99.25 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 10.51%, but down from $119.21 million year-over-year [2] - Shoals Technologies shares have declined approximately 64.9% year-to-date, contrasting with the S&P 500's gain of 8.7% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $136.48 million, and for the current fiscal year, it is $0.53 on revenues of $461 million [7] - The estimate revisions trend for Shoals Technologies is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The solar industry, to which Shoals Technologies belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, which may negatively impact stock performance [8] - Another company in the solar industry, Maxeon Solar Technologies, is expected to report a quarterly loss of $1.12 per share, reflecting a significant year-over-year decline [9]

– Quarterly Revenue of $99.2 million – – Gross Margin of 40.3% – – Net Income of $11.8 million – – Adjusted EBITDA of $27.7 million – – Backlog and Awarded Orders Increased 18% Year-Over-Year to $642.3 million – – Provides Third Quarter and Full Year 2024 Outlook – PORTLAND, Tenn., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Shoals Technologies Group, Inc. ("Shoals" or the "Company") (Nasdaq: SHLS), a leading provider of electrical balance of system ("EBOS") solutions for the energy transition market, today announced ...