Toronto, Ontario–(Newsfile Corp. – May 24, 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 three months ended March 31, 2023. UGE reports all amounts in US dollars.
In Q1 2023, UGE continued to grow its business of developing, building, financing, and operating commercial and community solar facilities. The Company experienced one of its strongest growth quarters in its history, highlighted by declaring NTP (notice to proceed) on 10 MW of projects and COD (commercial operation) on a 1.4 MW project in Texas.
Key financial results in Q1 2023 included:
Ended Q1 2023 with 3.8 MW of operating assets that contributed $107.3 K of energy generation revenue with an 87% gross margin, representing an increase of 143% in recurring revenue over the prior year. UGE is in the early stages of scaling its operational portfolio, which will see recurring revenue become the Company’s dominant source of revenue over time.
Realized total revenue of $521.7 K, representing growth of 43% over the same period of 2022. Total gross margins were 41% compared with 43% in 2022, remaining relatively consistent across the three business lines.
The net loss and adjusted net loss for the quarter was $2.8 MM, compared with $1.6 MM for the same quarter of 2022, as a result of continued investment in developing UGE’s project portfolio. UGE is currently developing a significant volume of projects; losses will continue until a greater share of the Company’s portfolio have reached commercial operations. The change was primarily driven by increased headcount, development, and financing expenses as the Company develops its growing portfolio.
Cash used in operations was $0.4 MM and the cash balance at March 31, 2023 was $4.2 MM.
Key business highlights in Q1 2023 included:
UGE reached commercial operation on one project with 1,432 KW in rated capacity, bringing its total to 3,758 KW at March 31, 2023. Installed capacity is now four times the installed capacity as at the same time in 2022.
Achieved NTP on 10.1 MW of projects, a record for the Company, as a greater volume of projects in the Company’s backlog begin to reach construction.
Grew project backlog to 313 MW compared with 135 MW on March 31, 2022.
Continued the Company’s Green Bond fundraising initiative, closing face value $1.4 MM CAD ($1.1 MM US) of bonds in Q1 2023 and a further face value $0.29 MM CAD ($0.21 MM US) on April 27, 2023.
Progressed the sale of our Philippines projects as we focus project development and ownership efforts on the robust U.S. market.
“In Q1 2023, we took notable strides towards our initial goal of 100 MW of operating assets,” said UGE’s CEO, Nick Blitterswyk. “We exceeded our backlog growth target for the quarter with an additional 52.6 MW of net additions, which is over halfway towards our annual goal. Even more significantly, we reached NTP on 10.1 MW of projects as our team’s hard work begins to pay off.”
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: Thursday May 25, 2023
Time: 11:00am EDT
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@example.com 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.
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.