Financial Data and Key Metrics Changes - iSun reported first quarter 2023 revenue of $17.4 million, up 15% from $15.1 million in Q1 2022, driven by residential consumer demand and effective execution of the commercial and industrial backlog [27][41] - Gross profit in Q1 was $3.5 million, a 12% increase from $3.2 million in Q1 2022, with a gross margin of 20.5%, slightly down from 21% in the same period last year [9][41] - The operating loss improved to negative $2.7 million, a 54% improvement compared to a loss of negative $5.7 million in Q1 2022 [11] - iSun reported a net loss of $3 million or negative $0.19 per share in Q1 2023, compared to a net loss of $2.9 million or negative $0.23 per share in Q1 2022 [11] - Adjusted EBITDA for Q1 was a loss of $1.5 million or $0.10 per share, compared to a loss of $0.1 million or negative $0.01 per share in the same period in 2022 [12] Business Segment Data and Key Metrics Changes - The Residential division generated revenue of $6.85 million in Q1 2023, with customer orders of approximately $17.9 million expected to be completed within 3 to 5 months [8] - The Commercial and Industrial division generated revenue of $10.3 million in Q1 2023, with a contracted backlog of approximately $152.9 million expected to be completed within 10 to 18 months [8] - The Utility and Development division generated revenue of $0.2 million in Q1 2023, with a contracted backlog of $8 million and 1.6 gigawatts of projects under development [9] Market Data and Key Metrics Changes - As of March 31, 2023, total backlog was $178.8 million, reflecting increased customer demand and effective strategic initiatives [28][49] - The company added $32 million in new business during Q1, indicating strong market activity [28] Company Strategy and Development Direction - The company aims to achieve operating profitability in 2023, supported by investments made to create recurring opportunities and the positive landscape provided by the Inflation Reduction Act [18][32] - iSun is focused on operational improvements and synergies among divisions to enhance efficiency and margin expansion [10][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute effectively against its strategic plan, citing strong customer relationships and a solid backlog [32][37] - The company expects total revenues for fiscal year 2023 to be between $95 million and $100 million, reflecting a 24% to 31% increase from 2022 [24] Other Important Information - Total debt decreased to $13 million as of March 31, 2023, down from $13.5 million at the end of 2022, reflecting ongoing repayment of long-term debt [14] - Cash position improved to $7.2 million as of March 31, 2023, from $5.5 million at the end of 2022 [14] Q&A Session Summary Question: Clarification on liquidity and second tranche availability - Management confirmed that all requirements and covenants for the second tranche have been met, with no indications of failing to achieve key revenue and adjusted EBITDA covenants for Q2 and Q3 [2] Question: Acceleration of fulfillment timeline for residential backlog - Management explained that the acceleration is due to a refocus on core products and services, improving overall efficiency in installations [21] Question: EV opportunities with a specific customer - Management indicated that there are multiple sites and significant potential for future contracts with the customer, with ongoing discussions for additional projects [22]
iSun(ISUN) - 2023 Q1 - Earnings Call Transcript