Toronto, Ontario–(Newsfile Corp. – April 28, 2022) – UGE International Ltd. (TSXV: UGE) (OTCQB: UGEIF) (the “Company” or “UGE”), a leader in the commercial and community solar sector, reports its financial results for the year ended December 31, 2021. UGE reports all amounts in US dollars.
In 2021, UGE continued to grow its business of developing, building, financing, and operating community and commercial solar facilities. The Company expanded significantly in 2021, as highlighted by its growth in projects under development, the scaling of its balance sheet, and the addition of several key employees throughout the year.
Key business and financial highlights for 2021 included:
Total pipeline and projects in development increased from 173MW on December 31, 2020 to 1,171MW on December 31, 2021 (inclusive of project development backlog) representing growth of nearly 7X as the Company focused on achieving greater scale. In early 2022, project development backlog declined due to decreases in the size of six Maine assets; it has since grown as additional projects were added, and currently sits at 149.8MW.
Operating assets grew from 0.8MW across four projects to 1.4MW across seven projects, as the Company’s earliest self-financed projects reached commercial operation. The Company finished the year with four projects under construction, totaling 1.6MW, of which three were in the U.S., all of which are expected to be operational by June 30, 2022.
Revenue grew 88% to $2.7MM versus $1.4MM in the prior year, with recurring revenue growing 486% to $0.2MM. Average gross margins were 32%, including 83% on recurring revenue and 39% on engineering revenue.
The Company’s balance sheet grew considerably, with total assets growing to $19.3MM as of December 31, 2021 from $6.2MM in the prior year, a result of financings to strengthen the Company’s capitalization and the signing of several long-term leases (right-of-use assets) associated with projects in development.
Overhead grew to $5.5MM, which included $0.7MM in share-based compensation, compared with $3.6MM in the prior year, as the Company added key staff to achieve its long-term goals. The Company expects more modest growth in overhead expenditures in 2022.
A net loss of $4.1MM, or $0.13 per share, was realized as the Company invests in developing its project portfolio. In the prior year the Company realized a net loss of $1.0MM. The primary reason for the narrower loss in 2020 was due to one-time gains associated with the wind-down of the Company’s former engineering, procurement, and construction (“EPC”) business.
“In 2021, we focused on significantly scaling UGE to capture a greater share of our fast-growing market,” said UGE’s CEO, Nick Blitterswyk. “We exceeded our growth targets and are on pace to exceed our 2024 goal of 100MW in operating assets, as well. In 2022 we look forward to further growth and maturation of our projects in development, as our operating portfolio continues to scale.”
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 host a webinar to provide further analysis of the financial results and to answer investor questions following the presentation. Interested parties can register for the webinar at:
Date: Thursday April 28, 2022
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:
+1 917 720 5685
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, including project backlog, 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. The forward-looking information involves material assumptions and known and unknown risks and uncertainties, certain of which are beyond the Company’s control. Such assumptions, risks and uncertainties include, without limitation, those associated with loss of markets, expected sales, future revenue recognition, the ability to secure appropriate sites, the effect of global and regional economic conditions, equipment supply and pricing, changes in electricity prices, delays and over runs in construction, delays in or inability to obtain permits, changes in laws and regulations and changes in how they are interpreted and enforced, changes in tax policies and incentive programs, the lack of qualified personnel or management, fluctuations in foreign exchange or interest rates, demand for the Company’s services, and availability of capital and funding. The forward-looking information is made as of the date of this news release and 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 securities law.
Neither the TSX Venture Exchange nor its Market Regulator (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.