{"id":457990,"date":"2021-03-15T16:08:22","date_gmt":"2021-03-15T20:08:22","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=457990"},"modified":"2021-03-15T16:08:22","modified_gmt":"2021-03-15T20:08:22","slug":"shoals-technologies-group-inc-reports-financial-results-for-fourth-quarter-and-full-year-2020","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/shoals-technologies-group-inc-reports-financial-results-for-fourth-quarter-and-full-year-2020\/","title":{"rendered":"Shoals Technologies Group, Inc. Reports Financial Results for Fourth Quarter and Full-Year 2020"},"content":{"rendered":"
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\u2013 Reports Record Revenue and Earnings for 2020 \u2013<\/p>\n

\u2013 Fourth Quarter Gross Margin Expands More Than 530 bps Year-Over-Year \u2013<\/p>\n

\u2013 Backlog at December 31, 2020 up 46% Versus Last Year \u2013<\/p>\n

\u2013 Provides 2021 Outlook for Continued Strong Growth \u2013<\/p>\n

PORTLAND, Tenn., March 15, 2021 (GLOBE NEWSWIRE) — Shoals Technologies Group, Inc. (\u201cShoals\u201d or the \u201cCompany\u201d) (Nasdaq: SHLS), a leading provider of electrical balance of system (\u201cEBOS\u201d) solutions for solar, battery storage and electric vehicle charging infrastructure, today announced financial results for its fourth quarter and full year ended December 31, 2020.<\/p>\n

\u201c2020 was another record year for Shoals.\u00a0 We grew revenues 21%, expanded adjusted EBITDA margins more than 900 basis points, increased the percentage of our revenues from system solutions to 66% and successfully navigated the unique challenges created by the coronavirus pandemic.\u00a0 Our results reflect the tremendous efforts of our team members and the passion they have for our technology and its important role in the energy transition,\u201d said Jason Whitaker, Chief Executive Officer of Shoals.<\/p>\n

Mr. Whitaker continued, \u201cOur focus for 2021 is executing on the growth strategies that we described during our initial public offering which include converting more customers to our BLA solution, broadening our product offering into complementary categories of EBOS, expanding internationally and introducing new products for EV charging infrastructure.\u00a0 We are on or ahead of plan for each of these initiatives.\u00a0 BLA is continuing to take share from conventional homerun solutions and we are on track to convert several new EPCs and developers to our system in 2021.\u00a0 We are on schedule to launch wire management and IV curve benchmarking products in Q2 to complement the BLA and we expect both products to begin generating revenues in Q4.\u00a0 We recently hired our head of EMEA sales to continue building our international sales pipeline.\u00a0 We are taking steps to accelerate the development of our EV infrastructure business because we see an opportunity to bring game changing innovation to that market similar to what we did in solar.\u00a0 As part of that effort, we hired Jeff Tolnar to head our newly formed EV infrastructure business.\u00a0 Jeff previously served as Chief Commercial Officer of Greenlots, a leading provider of turnkey EV charging solutions that was acquired by Shell.\u201d<\/p>\n

\u201cThe entire Shoals organization contributes to the Company\u2019s success and we are proud that all of our employees became shareholders through our recent initial public offering.\u00a0 The energy transition is a global megatrend that is in the very early innings.\u00a0 We see tremendous opportunity ahead for our employees and shareholders,\u201d concluded Mr. Whitaker.<\/p>\n

\n Results Three Months Ended December 31, 2020<\/strong>
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Revenues were $38.8 million, compared to $37.9 million for the prior-year period.\u00a0 Year-over-year growth was more modest in the fourth quarter due to extended downtime we took in December while we expanded capacity, as well as an extraordinarily strong fourth quarter of 2019.<\/p>\n

Gross profit increased 19.0% to $14.8 million, compared to $12.5 million in the prior year period driven primarily by a higher proportion of revenue from combine-as-you-go system solutions, purchasing efficiencies from increased volumes, improved material planning which reduced logistics costs, enhancements to product design that lowered manufacturing costs, and other manufacturing efficiencies resulting from higher production volume. Gross margin increased more than 530 bps to 38.3% from 32.9% in the prior year.<\/p>\n

Operating expenses were $7.7 million compared to $4.3 million during the same period in the prior year primarily as a result of higher equity-based compensation, increased payroll expense due to higher headcount, and non-recurring expenses related to our IPO.<\/p>\n

Income from operations was $7.2 million, compared to $8.1 million during the same period in the prior year.<\/p>\n

Net income was $4.2 million, compared to $7.8 million during the same period in the prior year. Adjusted net income increased 10.6% to $11.1 million, compared to $10.1 million during the same period in the prior year.<\/p>\n

Adjusted EBITDA increased 32.0% to $14.1 million, compared to $10.7 million for the prior-year period.<\/p>\n

\n Results Full Year Ended December 31, 2020<\/strong>
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Revenues grew 21.5% to $175.5 million in 2020, compared to $144.5 million in the prior year driven by significantly higher sales volumes as a result of increased demand for solar EBOS generally and our combine-as-you-go products specifically.\u00a0 The sale of system solutions represented 66% of revenues versus 51% in the prior year.<\/p>\n

Gross profit increased 50.5% to $66.5 million in 2020, compared to $44.2 million in the prior year, primarily driven by purchasing efficiencies from increased volumes, improved material planning which reduced logistics costs, enhancements to product design that lowered manufacturing costs and other manufacturing efficiencies resulting from higher production volumes. Gross margin increased to 37.9% from 30.6% in the prior year, in part due to changes in product mix, with sales of higher-margin products such as system solutions for combine-as-you-go EBOS increasing as a percentage of total revenues.<\/p>\n

Operating expense was $29.3 million compared to $17.3 million in the prior year primarily as a result of higher general and administrative expense. Operating expense for the year includes $8.3 million for non-cash equity-based compensation and $2.9 million for COVID-19 related costs, as well as professional fees related to the company\u2019s IPO and additional staffing compensation, offset by a reduction in marketing related expenses.<\/p>\n

Income from operations increased 38.4% to $37.3 million, compared to $26.9 million in the prior year.<\/p>\n

Net income grew 34.3% to $33.8 million, compared to $25.1 million in the prior year. Adjusted net income increased 66.4% to $56.3 million, compared to $33.9 million in the prior year.<\/p>\n

Adjusted EBITDA grew 65.6% to $60.9 million, compared to $36.8 million in the prior year.<\/p>\n

\n Backlog and Awarded Orders<\/strong>
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The Company\u2019s backlog and awarded orders at December 31, 2020 were $157 million, an increase of 46% year-over-year.\u00a0 The increase in backlog and awarded orders reflects continued robust demand for the company\u2019s products from customers in the U.S.<\/p>\n

\n Full Year 2021 Outlook\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>
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Based on current business conditions, business trends and other factors, for the full year 2021 ending December 31, 2021, the Company expects:<\/p>\n