Solar Alliance Second Quarter Revenue Grows 51% Year Over Year as Gross Profit Margin Improves to 35%

First positive comprehensive income result in the Company’s commercial solar history as contracted project backlog now totals $7.2 million

TORONTO and KNOXVILLE, Tenn., Aug. 24, 2023 (GLOBE NEWSWIRE) -- Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR), a leading solar energy solutions provider focused on the commercial and utility solar sectors, announces it has filed its unaudited financial results for the three- and six-month period ended June 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.   

“Solar Alliance delivered 51% year-over-year quarterly revenue growth during the second quarter of 2023,” said CEO Myke Clark. “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.”

“Just as importantly, the gross margin of 35% reflects the process improvements and disciplined approach we are taking to project execution. The stronger gross margin contributed to the first positive comprehensive income result in the Company’s commercial solar history. Solar Alliance has been clear in our signal to the market that a key focus was targeting profitability and we are pleased to see significant progress made towards this goal.”

Financial highlights

• Revenue for the three months ended June 30, 2023, was $1,454,213 an increase of 51% from $964,548 in the same period in 2022 as the Company continued to increase both the number and the size of projects in its construction pipeline.
• Cost of sales of $951,052 (Q2 2022: $891,789) resulting in a gross profit of $503,161 (Q2, 2022: $72,759) and a gross profit margin of 35% (Q2 2022: 8%).
• Total expenses for the period were $754,339, a 16% reduction from $897,825 in the comparable period in 2022, as the Company continues to identify and implement overhead efficiencies to support its profitability target, while experiencing continued revenue growth.
• The Company reported $197,311 in positive comprehensive income (Q2 2022: comprehensive loss of $440,918).
• Net loss for the quarter of $240,522, compared to a net loss of $208,304 in the comparable prior year period.
• Cash balance of $285,745 as of June 30, 2023.
• Contracted project backlog of approximately $7,200,000 as of June 30, 2023, supports continued revenue growth into 2024.

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