Toronto, Ontario–(Newsfile Corp. – April 5, 2023) – UGE International Ltd. (TSXV: UGE) (OTCQB: UGEIF) (the “Company” or “UGE”), a leader in commercial and community solar, reported its financial results for the year ended December 31, 2022. UGE reports all amounts in US dollars.
In 2022, UGE continued to grow its business of developing, building, financing, owning, and operating commercial and community solar and energy storage facilities. The Company executed on its strategic plan in 2022, by growing its project development backlog, moving its projects towards construction, expanding its operating portfolio, and scaling both its balance sheet and leadership team.
Key financial results in 2022 included:
- Ended 2022 with 2.3 MW of operating assets that contributed $350.6K of operating income with a 93% gross margin representing an increase of 85% in recurring revenue over the prior year. As UGE continues to scale its operational portfolio, recurring revenue will continue to grow and become the Company’s dominant source of revenue.
- Realized revenue of $3.8 MM, representing growth of 42% over 2021. Revenue included $2.7 MM in one-time revenue from client-financed EPC agreements, compared to $2.3 MM in the prior year, and $732.0K in engineering and consulting revenues, compared to $246.7K in the prior year. Total gross margins were 36% compared with 32% in 2021.
- Net loss of $7.4 MM for the year, compared with $4.2 MM for the prior year, as the Company invests in developing its project portfolio. The change was primarily driven by increased headcount as the Company built out its team to accommodate growth, along with as-expected increases in financing expenses.
- Adjusted net loss was $7.5MM in 2022 vs $4.9 MM in 2021.
- Cash used in operations was $6.5 MM and the cash and cash equivalents balance at December 31, 2022 was $2.1 MM
Key business highlights in 2022 included:
- Reached commercial operation on three solar facilities totaling 1,430kW for a total of 2,326kW at December 31, 2022, which more than doubled operating capacity from 896kW at December 31, 2021.
- Grew the US project backlog to 260 MW compared with 148 MW on December 31, 2021.
- Grew the Company’s green bond fundraising initiative, which included the issuance of $13.4M CAD (US$9.9MM) of bonds in 2022 which are secured against portfolios of projects pledged by the Company. The initiative has led to what management believes is a competitive source of capital versus other solar project developers and supports the Company’s long term growth plans.
- Developed our project backlog which will lead to a significant increase in projects reaching Notice to Proceed (“NTP”) (Stage 4.1) in 2023, the point at which they are cleared for construction.
- Streamlined the Company’s strategy by marketing projects developed in the Philippines for sale and focusing the Company’s project development and ownership efforts on the robust U.S. market.
- Completed the Company’s first acquisition of a project developed by another company, a 3.5MW community solar project in Oregon which will reach NTP in 2023. UGE believes that by leveraging its full-lifecycle platform and financing capabilities, it can complement its project development efforts through selective acquisitions of projects developed by third parties while generating strong returns and gaining access to new or strategic markets.
- Added senior leadership strength by way of Andrew Hines, the Company’s Chief Commercial Officer. Mr. Hines was previously co-founder and Chief Commercial Officer of CleanMAX. Subsequent to year-end, the Company also added Trevor Weed as its Chief Operating Officer as our incumbent, Robert van Duynhoven, retires. Mr. Weed was previously Chief Operating Officer of Blue Raven Solar.
Subsequent Events
- Already within 2023 the Company has reached commercial operation on a 1.4MW project in Texas as well as NTP on 10.1MW of projects, all of which are expected to become operational and revenue-generating within 2023.
- The Company completed a first close of a green bond for gross proceeds of CAD$1.4M (US$1.0M), as well as various project financing closes.
“In 2022, we stayed focused on executing our long-term growth strategy of developing, owning, and operating our portfolio as a renewable independent power producer (“IPP”),” said UGE’s CEO, Nick Blitterswyk. “Our portfolio is rapidly maturing, as witnessed by our numerous project milestones achieved so far in 2023, and we are excited to scale our operating portfolio and project development backlog significantly in 2023.”
Full financial results and Management’s Discussion and Analysis are posted to SEDAR (www.sedar.com) as well as on the Company’s website.
Online Webinar Details
UGE’s CEO, Nick Blitterswyk, and CFO, Stephanie Bird, will be hosting a webinar to provide further analysis of the financial results and to answer your questions following the presentation. You can register for the webinar, below:
Date: Wednesday April 5, 2022
Time: 11:00am EDT
Register Here
About UGE
UGE develops, owns, and operates commercial and community solar projects in the US and strategic markets abroad. Our distributed energy solutions deliver cheaper, cleaner energy to businesses and consumers with no upfront cost. With over 500MW of global experience, we work daily to power a more sustainable world. Visit us at www.ugei.com. For more information, contact UGE at: [email protected] or +1 917 720 5685.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Forward-Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the control of the Company. Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Forward looking statements include, but are not limited to, the anticipated use of proceeds, and the listing of the Green Debentures on the TSX Venture Exchange. The Company assumes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
