Third Quarter 2021 Financial Highlights
- Revenue of
$192.1 million - Net loss to common stockholders of
$31.0 million - Adjusted EBITDA loss of
$0.5 million (1) - Adjusted basic and diluted net loss per share of
$0.07 (1) - Executed contracts and awarded orders at
September 30, 2021 totaling$1 billion , a new record
(1) A reconciliation of the GAAP to the most comparable Non-GAAP results is included below.
“In the third quarter, we grew revenues 38%, generated over
Third Quarter 2021 Financial Results
Revenues increased 38% to
Gross profit decreased 65% to
Operating expenses decreased to
Net loss to common stockholders was
Adjusted EBITDA decreased to a loss of
Adjusted net loss was
Executed Contracts and Awarded Orders
Total executed contracts and awarded orders at
Third Quarter 2021 Highlights and Recent Developments
- Awarded more than
$315 million in new projects during the third quarter, the second highest quarterly bookings in the company’s history - Entered into a multi-year supply agreement with POSCO for steel, further diversifying our supply chain
- Appointed
Ken Stacherski , who previously served as our SVP of Operations, as our Chief Operations Officer - Entered into an agreement to acquire STI Norland, a leading provider of PV mounting systems in
Europe andLatin America , significantly expanding our international footprint and adding a lower-priced product offering ideally suited for emerging markets
Full Year 2021 Outlook
“We are making good progress working off our legacy, lower priced backlog and we believe the ‘hangover’ effect on our margins from those orders will dissipate by the first quarter of 2022. We believe our full year 2021 results will be within the range of the guidance we have provided, but likely at the lower end given continued constraints on freight availability which could impact our ability to ship product in the fourth quarter. Any shipments that are delayed from the fourth quarter will result in higher revenues in the first quarter of 2022” said
Conference Call Information
Array management will host a conference call today at
Interested investors and other parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of the Company's website at http://ir.arraytechinc.com. The online replay will be available for 30 days on the same website immediately following the call.
To learn more about
About
Investor Relations Contact:
Investor Relations
505-437-0010
investors@arraytechinc.com
Forward-Looking Statements
This press release contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include information concerning our projected future results of operations, business strategies, our planned acquisition of STI Norland and industry and regulatory environment. Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” "seek," “should,” “will,” “would” or similar expressions and the negatives of those terms.
Array’s actual results and the timing of events could materially differ from those anticipated in such forward-looking statements as a result of certain risks and uncertainties including those described in more detail in the Company’s most recent Annual Report on Form 10-K and other documents on file with the
Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Non-GAAP Financial Information
This presentation includes certain financial measures that are not presented in accordance with
We believe that these non-GAAP financial measures are provided to enhance the reader’s understanding of our past financial performance and our prospects for the future. Our management team uses these non-GAAP financial measures in assessing the Company’s performance, as well as in planning and forecasting future periods. The non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies.
Among other limitations, Adjusted EBITDA and Adjusted Net Income do not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; do not reflect income tax expense or benefit; and other companies in our industry may calculate Adjusted EBITDA and Adjusted Net Income differently than we do, which limits their usefulness as comparative measures. Because of these limitations, Adjusted EBITDA and Adjusted Net Income should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA and Adjusted Net Income on a supplemental basis. You should review the reconciliation of net income (loss) to Adjusted EBITDA and Adjusted Net Income below and not rely on any single financial measure to evaluate our business.
Consolidated Balance Sheets (unaudited) (in thousands except share and per share amounts) | |||||||
2021 | 2020 | ||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 116,391 | $ | 108,441 | |||
Accounts receivable, net | 177,462 | 118,694 | |||||
Inventories, net | 173,126 | 118,459 | |||||
Income tax receivables | 6,453 | 17,158 | |||||
Prepaid expenses and other | 18,193 | 12,423 | |||||
Total current assets | 491,625 | 375,175 | |||||
Property, plant and equipment, net | 10,202 | 9,774 | |||||
69,727 | 69,727 | ||||||
Other intangible assets, net | 180,630 | 198,260 | |||||
Other assets | 24,405 | 3,088 | |||||
Total assets | $ | 776,589 | $ | 656,024 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIT) | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 84,703 | $ | 82,755 | |||
Accounts payable - related party | 610 | 2,232 | |||||
Accrued expenses and other | 31,256 | 29,164 | |||||
Accrued warranty reserve | 3,025 | 3,049 | |||||
Income tax payable | 629 | 8,814 | |||||
Deferred revenue | 81,347 | 149,821 | |||||
Current portion of contingent consideration | 2,168 | 8,955 | |||||
Current portion of term loan | 4,300 | 4,313 | |||||
Other current liabilities | 6,457 | — | |||||
Total current liabilities | 214,495 | 289,103 | |||||
Long-term liabilities | |||||||
Deferred tax liability | 6,583 | 13,114 | |||||
Contingent consideration, net of current portion | 10,784 | 10,736 | |||||
Other long-term liabilities | 2,953 | — | |||||
Long-term debt, net of current portion, debt discount and issuance costs | 299,212 | 423,970 | |||||
Total long-term liabilities | 319,532 | 447,820 | |||||
Total liabilities | 534,027 | 736,923 | |||||
Commitments and contingencies | |||||||
Series A Reedemable Perpetual Preferred Stock of authorized; 350,000 at | 235,278 | — | |||||
Stockholders’ equity/(deficit) | |||||||
Preferred stock of | — | — | |||||
Common stock of 134,869,467 and 126,994,467 shares issued as of and | 135 | 127 | |||||
Additional paid-in capital | 251,330 | 140,473 | |||||
Accumulated deficit | (244,181 | ) | (221,499 | ) | |||
Total stockholders’ equity/(deficit) | 7,284 | (80,899 | ) | ||||
Total liabilities and stockholders’ equity/(deficit) | $ | 776,589 | $ | 656,024 |
Consolidated Statements of Operations (unaudited) (in thousands, except share amounts) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue | $ | 192,068 | $ | 139,462 | $ | 640,796 | $ | 692,096 | ||||||||
Cost of revenue | 182,789 | 112,731 | 560,872 | 524,747 | ||||||||||||
Gross profit | 9,279 | 26,731 | 79,924 | 167,349 | ||||||||||||
Operating expenses | ||||||||||||||||
General and administrative | 18,493 | 11,873 | 58,279 | 34,772 | ||||||||||||
Contingent consideration | 936 | 13,591 | 1,071 | 16,008 | ||||||||||||
Depreciation and amortization | 5,984 | 6,374 | 17,949 | 19,117 | ||||||||||||
Total operating expenses | 25,413 | 31,838 | 77,299 | 69,897 | ||||||||||||
Income (loss) from operations | (16,134 | ) | (5,107 | ) | 2,625 | 97,452 | ||||||||||
Other expense | ||||||||||||||||
Other expense, net | (297 | ) | (29 | ) | (497 | ) | (2,163 | ) | ||||||||
Interest expense | (13,109 | ) | (673 | ) | (28,769 | ) | (8,313 | ) | ||||||||
Total other expense | (13,406 | ) | (702 | ) | (29,266 | ) | (10,476 | ) | ||||||||
Income (loss) before income tax expense (benefit) | (29,540 | ) | (5,809 | ) | (26,641 | ) | 86,976 | |||||||||
Income tax expense (benefit) | (3,988 | ) | 1,423 | (3,959 | ) | 18,131 | ||||||||||
Net income (loss) | $ | (25,552 | ) | $ | (7,232 | ) | $ | (22,682 | ) | $ | 68,845 | |||||
Preferred dividends and accretion | (5,479 | ) | — | (5,479 | ) | — | ||||||||||
Net income (loss) to common shareholders | (31,031 | ) | (7,232 | ) | (28,161 | ) | 68,845 | |||||||||
Earnings (loss) per share | ||||||||||||||||
Basic | $ | (0.24 | ) | $ | (0.06 | ) | $ | (0.22 | ) | $ | 0.57 | |||||
Diluted | $ | (0.24 | ) | $ | (0.06 | ) | $ | (0.22 | ) | $ | 0.57 | |||||
Weighted average number of shares | ||||||||||||||||
Basic | 130,955 | 119,994 | 128,315 | 119,994 | ||||||||||||
Diluted | 130,955 | 119,994 | 128,315 | 119,994 |
Consolidated Statements of Cash Flows (unaudited) (in thousands) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Cash flows used in operating activities | ||||||||||||||||
Net income (loss) | $ | (25,552 | ) | $ | (7,232 | ) | $ | (22,682 | ) | $ | 68,845 | |||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||||||||
Provision for (recovery of) bad debts | (23 | ) | 270 | (574 | ) | 493 | ||||||||||
Deferred tax benefit | (7,889 | ) | (2,290 | ) | (6,531 | ) | (3,666 | ) | ||||||||
Depreciation and amortization | 6,490 | 6,863 | 19,454 | 20,587 | ||||||||||||
Amortization of debt discount and issuance costs | 8,535 | — | 13,653 | 2,160 | ||||||||||||
Interest paid-in-kind | — | 348 | — | 3,421 | ||||||||||||
Equity-based compensation | 2,239 | 853 | 11,706 | 3,264 | ||||||||||||
Contingent consideration | 936 | 13,591 | 1,071 | 16,008 | ||||||||||||
Warranty provision | (120 | ) | 36 | 305 | 633 | |||||||||||
Provision for inventory obsolescence | (582 | ) | 2,296 | 654 | 2,517 | |||||||||||
Changes in operating assets and liabilities | ||||||||||||||||
Accounts receivable | (23,829 | ) | (19,750 | ) | (58,194 | ) | (22,340 | ) | ||||||||
Inventories | (34,878 | ) | 6,469 | (55,321 | ) | 48,992 | ||||||||||
Income tax receivables | 3,204 | 2,799 | 10,705 | (15,890 | ) | |||||||||||
Prepaid expenses and other | (6,596 | ) | 39 | (5,770 | ) | 7,222 | ||||||||||
Accounts payable | 3,326 | 17,112 | 1,948 | (82,284 | ) | |||||||||||
Accounts payable - related party | — | (3,690 | ) | (1,622 | ) | (3,690 | ) | |||||||||
Accrued expenses and other | 12,224 | 9,009 | 1,683 | 4,644 | ||||||||||||
Income tax payable | 629 | (29,240 | ) | (8,185 | ) | 6,584 | ||||||||||
Lease liabilities | 269 | — | 337 | — | ||||||||||||
Contingent consideration | — | — | — | — | ||||||||||||
Deferred revenue | 29,889 | 23,917 | (68,474 | ) | (284,000 | ) | ||||||||||
Net cash used in operating activities | (31,728 | ) | 21,400 | (165,837 | ) | (226,500 | ) | |||||||||
Cash flows used in investing activities | ||||||||||||||||
Purchase of property, plant and equipment | (1,052 | ) | (345 | ) | (2,252 | ) | (610 | ) | ||||||||
Investment in equity security | — | — | (11,975 | ) | ||||||||||||
Net cash used in investing activities | (1,052 | ) | (345 | ) | (14,227 | ) | (610 | ) | ||||||||
Cash flows from financing activities | ||||||||||||||||
Proceeds from revolving credit facility | — | (4,298 | ) | 102,000 | 32 | |||||||||||
Principal payments on term loan facility | (101,075 | ) | — | (132,150 | ) | (57,702 | ) | |||||||||
Proceeds from (Payments on) revolving loan | (102,000 | ) | — | (102,000 | ) | — | ||||||||||
Payments on related party loans | — | (23,822 | ) | — | (45,558 | ) | ||||||||||
Proceeds from issuance of Series A Preferred | 224,987 | — | 224,987 | — | ||||||||||||
Proceeds from issuance of common stock | 120,645 | — | 120,645 | |||||||||||||
Issuance costs of Series A Preferred | (7,195 | ) | — | (7,195 | ) | — | ||||||||||
Issuance costs of common stock | (3,873 | ) | — | (3,873 | ) | — | ||||||||||
Contingent consideration | — | — | (7,810 | ) | — | |||||||||||
Debt issuance costs | — | (3,775 | ) | (6,590 | ) | (3,775 | ) | |||||||||
Net cash provided by (used in) financing activities | 131,489 | (31,895 | ) | 188,014 | (107,003 | ) | ||||||||||
Net change in cash, cash equivalents and restricted cash | 98,709 | (10,840 | ) | 7,950 | (334,113 | ) | ||||||||||
Cash, cash equivalents, beginning of period | 17,682 | 37,984 | 108,441 | 361,257 | ||||||||||||
Cash, cash equivalents, end of period | $ | 116,391 | $ | 27,144 | $ | 116,391 | $ | 27,144 |
Adjusted EBITDA Reconciliation (unaudited) (in thousands) | ||||||||||||||||
The following table reconciles net income (loss) to Adjusted EBITDA: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net income (loss) | $ | (31,031 | ) | $ | (7,232 | ) | $ | (28,161 | ) | $ | 68,845 | |||||
Preferred dividends and accretion | 5,479 | — | 5,479 | — | ||||||||||||
Interest expense, net | 13,109 | 673 | 28,769 | 8,313 | ||||||||||||
Other expense, net | 297 | 29 | 497 | 2,163 | ||||||||||||
Income tax expense (benefit) | (3,988 | ) | 1,423 | (3,959 | ) | 18,131 | ||||||||||
Depreciation expense | 613 | 550 | 1,825 | 1,650 | ||||||||||||
Amortization of intangibles | 5,878 | 6,313 | 17,630 | 18,937 | ||||||||||||
Equity-based compensation | 2,240 | 852 | 14,271 | 3,264 | ||||||||||||
Contingent consideration | 936 | 13,591 | 1,071 | 16,008 | ||||||||||||
ERP implementation costs(a) | — | 375 | — | 1,946 | ||||||||||||
Legal expense(b) | 882 | 64 | 1,025 | 899 | ||||||||||||
Other costs(c) | 5,081 | — | 11,672 | 334 | ||||||||||||
Adjusted EBITDA | $ | (504 | ) | $ | 16,638 | $ | 50,119 | $ | 140,490 |
(a) Represents consulting costs associated with our enterprise resource planning system implementation.
(b) Represents certain legal fees and other related costs associated with (i) a patent infringement action against a competitor for which a judgement has been entered in our favor and successful defense of a related matter, (ii) a pending action against a competitor in connection with violation of a non-competition agreement and misappropriation of trade secrets, and (iii) actions filed against the company and certain officers and directors alleging violations of the Securities Exchange Acts of 1934 and 1933. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.
(c) For the three months ended
Adjusted Net Income Reconciliation (Unaudited) (In thousands) | ||||||||||||||||
The following table reconciles net income (loss) to Adjusted Net Income: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net income (loss) | $ | (31,031 | ) | $ | (7,232 | ) | $ | (28,161 | ) | $ | 68,845 | |||||
Accretion of Series A Preferred | 2,684 | — | 2,684 | — | ||||||||||||
Amortization of intangibles | 5,878 | 6,313 | 17,630 | 18,937 | ||||||||||||
Amortization of debt discount and issuance costs | 8,879 | — | 13,997 | 2,160 | ||||||||||||
Equity-based compensation | 2,240 | 852 | 14,271 | 3,264 | ||||||||||||
Contingent consideration | 936 | 13,591 | 1,071 | 16,008 | ||||||||||||
ERP implementation costs(a) | — | 375 | — | 1,946 | ||||||||||||
Legal expense(b) | 882 | 64 | 1,025 | 899 | ||||||||||||
Other costs(c) | 5,081 | — | 11,672 | 2,566 | ||||||||||||
Income tax expense of adjustments(d) | (5,334 | ) | (1,586 | ) | (11,804 | ) | (6,227 | ) | ||||||||
Non-recurring income tax adjustments related to the | — | — | — | (6,608 | ) | |||||||||||
Adjusted Net Income (loss) | $ | (9,785 | ) | $ | 12,377 | $ | 22,385 | $ | 101,790 |
(a) Represents consulting costs associated with our enterprise resource planning system implementation.
(b) Represents certain legal fees and other related costs associated with (i) a patent infringement action against a competitor for which a judgement has been entered in our favor and successful defense of a related matter,(ii) a pending action against a competitor in connection with violation of a non-competition agreement and misappropriation of trade secrets, and (iii) actions filed against the company and certain officers and directors alleging violations of the Securities Exchange Acts of 1934 and 1933. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.
(c) For the three months ended
(d) Represents the estimated tax impact of all Adjusted Net Income add-backs, excluding those which represent permanent differences between book versus tax.
Source:
2021 GlobeNewswire, Inc., source