{"id":526172,"date":"2021-08-10T16:04:59","date_gmt":"2021-08-10T20:04:59","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/shoals-technologies-group-inc-reports-financial-results-for-second-quarter-2021\/"},"modified":"2021-08-10T16:04:59","modified_gmt":"2021-08-10T20:04:59","slug":"shoals-technologies-group-inc-reports-financial-results-for-second-quarter-2021","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/shoals-technologies-group-inc-reports-financial-results-for-second-quarter-2021\/","title":{"rendered":"Shoals Technologies Group, Inc. Reports Financial Results for Second Quarter 2021"},"content":{"rendered":"
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\u2013 Reports Record Second Quarter Revenue Increased 38% Year-Over-Year to $59.7 million \u2013<\/p>\n

\u2013 System Solutions Revenue Increased 62% to $51.2 million \u2013<\/p>\n

\u2013 Second Quarter Gross Profit Margin Expands More Than 500 bps Year-Over-Year \u2013<\/p>\n

\u2013 Backlog and Awarded Orders at June 30, 2021 Up 63% Versus Last Year \u2013<\/p>\n

\u2013 Reaffirms 2021 Outlook \u2013<\/p>\n

PORTLAND, Tenn., Aug. 10, 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 results for its second quarter ended June 30, 2021.<\/p>\n

\u201cShoals delivered another record quarter, with revenue growth accelerating to 38% year-over-year and gross margin improving over 500 basis points. System solutions grew 62% year-over-year and contributed 86% of revenues in the quarter. The continued strength in our results and robust customer demand support our growth outlook,\u201d said Jason Whitaker, Chief Executive Officer of Shoals.<\/p>\n

Mr. Whitaker added, \u201cWe are happy to report Shoals is continuing to progress on its growth strategies of converting more customers to our BLA solution, expanding internationally, broadening our product offering into complementary categories of EBOS and introducing new products for EV charging infrastructure. Since going public in January, we have more than doubled the number of BLA customers and have an additional 13 customers in transition to our system, including two international customers. Both our new IV curve benchmarking and wire management solutions are on track to generate revenues starting in the fourth quarter and our EV charging products are on track to launch later this year. Notably, the market opportunity for Shoals in EV infrastructure has more than doubled since we announced our entry into the market earlier this year, and we are moving rapidly to capitalize on the opportunity. I am proud of our team\u2019s accomplishments and even more excited about the growth ahead of us.\u201d<\/p>\n

\n Second Quarter 2021 Financial Results<\/strong>
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Revenues were $59.7 million, compared to $43.4 million for the prior-year period, an increase of 38%, driven by a 62% year-over-year increase in System Solutions revenues, which was partly offset by a decline in Components revenues.<\/p>\n

The growth in System Solutions revenues reflects strong demand for the Company\u2019s combine-as-you-go system. The decline in Components revenues was consistent with the expected change in certain customers\u2019 order timing relative to last year and the conversion of other customers from Components to System Solutions. The sale of System Solutions represented 86% of revenues versus 73% in the prior-year period. Our total number of customers increased in 2021 as compared to 2020.<\/p>\n

Gross profit increased 56% to $26.2 million, compared to $16.8 million in the prior-year period. Gross profit as a percentage of revenue increased by over 500 basis points to 43.8% from 38.8% in the prior year period, driven primarily by increased revenue and 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.<\/p>\n

General and administrative expenses were $10.0 million compared to $9.3 million during the same period in the prior year. This increase was primarily a result of planned increased payroll expense due to higher headcount to support our growth and product initiatives, new public company costs and non-recurring public offering expenses, partially offset by a decrease in equity-based compensation.<\/p>\n

Income from operations was $14.1 million, compared to $5.4 million during the same period in the prior year, an increase of 159%.<\/p>\n

Net income was $9.2 million, compared to net income of $5.2 million during the same period in the prior year. The increase in net income was primarily due to increased systems solutions revenue partially offset by an increase in interest expense. Net income and loss for 2021 are not directly comparable to 2020 because prior to its IPO, the Company was organized as a tax flow-through partnership rather than a corporation and did not record income taxes. Basic and diluted earnings per share was $0.05.<\/p>\n

Adjusted EBITDA increased 34% to $20.6 million, compared to $15.4 million for the prior-year period.<\/p>\n

Adjusted net income increased 12% to $14.7 million, compared to $13.1 million during the same period in the prior year. Adjusted diluted earnings per share was $0.09.<\/p>\n

\n First Six Months 2021 Financial Results<\/strong>
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Revenues were $105.3 million, compared to $84.2 million for the prior-year period, an increase of 25%, driven by a 55% year-over-year increase in System Solutions revenues which was partly offset by a decline in Components revenues.<\/p>\n

The growth in System Solutions revenues reflects strong demand for the Company\u2019s combine-as-you-go system for the first six months of 2021. The sale of System Solutions represented 80% of revenues versus 65% in the prior-year period.<\/p>\n

Gross profit increased 45% to $45.0 million for the first six months of 2021, compared to $31.0 million in the prior-year period. Gross profit as a percentage of revenue increased by 590 basis points to 42.7% from 36.8% in the prior year period, driven primarily by increased revenue and 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.<\/p>\n

General and administrative expenses were $16.8 million for the first six months of 2021 compared to $11.9 million during the same period in the prior year. This increase was primarily a result of new public company costs and non-recurring expenses related to our public offerings, planned increased payroll expense due to higher headcount to support our growth and product initiatives, partially offset by a decrease in equity-based compensation.<\/p>\n

Income from operations was $24.0 million for the first six months of 2021, compared to $15.0 million during the same period in the prior year, an increase of 60%.<\/p>\n

Net income was $0.8 million for the first six months of 2021, compared to net income of $14.5 million during the same period in the prior year. The decrease in net income was primarily the result of a $16.0 million charge the Company recorded in the first quarter related to loss on debt repayment. Net income and loss for 2021 are not directly comparable to 2020 because prior to its IPO, the Company was organized as a tax flow-through partnership rather than a corporation and did not record income taxes.<\/p>\n

Adjusted EBITDA increased 26% to $34.7 million for the first six months of 2021, compared to $27.5 million for the prior-year period.<\/p>\n

Adjusted net income was $23.4 million for the first six months of 2021, compared to $22.1 million during the same period in the prior year. Adjusted diluted earnings per share was $0.14.<\/p>\n

\n Backlog and Awarded Orders<\/strong>
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The Company\u2019s backlog and awarded orders on June 30, 2021 were $200.5 million, an increase of 63% year-over-year and 11% versus March 31, 2021. The increase in backlog and awarded orders reflects continued robust demand for the company\u2019s products from customers in the U.S. Backlog represents signed purchase orders or contractual minimum purchase commitments with take-or-pay provisions and awarded orders are orders we are in the process of documenting a contract but for which a contract has not yet been signed.<\/p>\n

\n Full Year 2021 Outlook<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0
Based on current business conditions, business trends and other factors, the Company reaffirms its previously announced outlook for the full year ending December 31, 2021 which calls for:<\/p>\n