TORONTO and KNOXVILLE, Tenn., April 30, 2024 (GLOBE NEWSWIRE) -- Solar Alliance Energy Inc. ('Solar Alliance' or the 'Company') (TSX-V: SOLR, OTC: SAENF), a leading solar energy solutions provider focused on the commercial and utility solar sectors, announces it has filed its audited financial results for the quarter and year ended December 31, 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 continued to successfully execute on our strategy as our team delivered a 55% increase in revenue year-over-year," said CEO Myke Clark. "Solar Alliance continues to see strong demand for commercial solar projects, and we remain focused on larger, higher margin commercial solar projects to support our growth. In addition to executing on larger projects, we are now experiencing strong demand for solar projects for small and medium-sized businesses in rural communities. We reduced expenses and overhead during 2023 and we believe we will experience ongoing bottom-line improvements as those cost reductions have an impact on the full year for 2024. We continue to build a stable, growing company that is well positioned to take advantage of the current global shift to renewable energy," concluded Clark.
Key financial highlights for 2023
- Revenue grew 55% year-over-year to $7,473,937 (2022 - $4,825,984) for the year ended December 31, 2023, as the company continued to expand its commercial and utility solar business.
- Cost of sales of $6,399,169 (2022 - $4,371,698) resulting in a gross profit of $1,074,768 (2022 - $454,286).
- Net cash provided by operating activities $97,425 (2022 - Net cashed used by operating activities - $1,484,220)
- Cash balance of $702,988 (2022 - $650,061) as of December 31, 2023.
- A net loss of $1,811,861 (2022 - $2,746,914).
- The Company recorded a one-time loss of $521,648 related to the sale of two solar projects in New York.
- Total expenses of $3,037,881 (2022 - $4,283,008), a 29% reduction.
- Salaries and benefits of $1,343,363 (2022 - $2,279,413), a 41% reduction.
- Short-term loans and notes payable of $137,500 in 2023 (2022 - $1,556,984).
Key business highlights and outlook
Large Project focus momentum. 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.
Small and medium-sized project growth accelerates. A key component for small businesses wanting to reduce utility costs are Rural Energy for America Program ("REAP") grants and loans from the United States Department of Agriculture ("USDA"). Supported by funding from the U.S. Inflation Reduction Act, REAP promotes lower energy costs and resilience while opening new income opportunities for the rural small businesses and agri-businesses the USDA serves. Solar Alliance has dedicated sales resources to supporting the increased demand created by the REAP program and has signed several small and medium-sized projects as a result. These projects are in addition to the sales funnel of larger projects the Company continues to pursue.
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.
BC Call for Power. In British Columbia, Canada, the utility BC Hydro formally launched the 2024 Call for Power on April 3, 2024. The Company has maintained the development rights, wind resource data and environmental data for a potential 77-megawatt legacy wind project in the province and will be reviewing the RFP and any opportunities to participate.
Myke Clark, CEO
For more information: |
Investor Relations Myke Clark, CEO 604-359-5178 mclark@solaralliance.com |
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 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 in this press release include, but is not limited to the ability to scale, increasing project margins, targeting profitability and the Company offering a unique investment opportunity in the renewables sector space. 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, 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, the targeting of larger customers, potential corporate growth opportunities and the ability to execute on the key objectives in 2024. 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."
