Zeo Energy Corp. (Nasdaq: ZEO) (“Zeo”,
“Zeo Energy”, or the “Company”), a leading Florida-based
provider of residential solar and energy efficiency solutions,
today reported financial results for the fourth quarter and full
year ended December 31, 2023.
Recent Financial and Operational Highlights
- Net revenue for the full year 2023 increased
24% to $110.1 million
- Gross profit for the full year 2023 increased
26% to $20.2 million
- Adjusted EBITDA for the full year 2023
increased 8% to $11.2 million
- Completed business combination with ESGEN
Acquisition Corp. on March 13, 2024 (the “Business Combination”),
resulting in ZEO and ZEOWW trading on the Nasdaq Capital Market
Stock Exchange)
Management Commentary“2023 was a
transformational year for our business, culminating in a successful
business combination and public listing on the Nasdaq Capital
Market,” said Zeo Energy CEO Tim Bridgewater. “Even as we faced
significant industry headwinds and managed the additional demands
of our merger, we executed our strategy effectively and produced
strong solar system installation and revenue growth for the year,
closing with $110.1 million in net revenue. Also, our asset-light
business model allowed us to drive our profitability metrics, and
we finished 2023 with $20.2 million in gross profit and $11.2 in
adjusted EBITDA. We opened a new market in Missouri as well,
advancing our commitment to geographic expansion in the US.
“We believe that our completed merger is the necessary spark for
us to accelerate our growth strategy,” Bridgewater continued. “As
we turn to 2024, we remain confident in our approach to providing
residential solar solutions to high growth markets. We plan to
expand into several new geographies, drive sustainable
profitability, and take additional market share in the residential
solar space, all in service of our mission to serve more customers
seeking to meet their power and energy storage needs. We believe we
have the right talent on our teams around the country to accomplish
our goals, and we look forward to the path ahead for Zeo
Energy.”
Fourth Quarter 2023 Financial ResultsResults
compare the 2023 fiscal fourth quarter ended December 31, 2023, to
the 2022 fiscal fourth quarter ended December 31, 2022, unless
otherwise indicated.
- Net revenue totaled $23.4 million, a 2% increase from $22.9
million in the comparable 2022 period. This increase was primarily
due to customers adopting our lease finance option.
- Gross profit increased to $3.1 million (13.4% of net revenue)
from $2.9 million (12.8% of net revenue) for the comparable 2022
period. The increase in gross profit was driven by the increase in
net revenue.
- Net income decreased to a loss of $0.1 million (-0.6% of net
revenue) from a net income of approximately $1.1 million (4.7% of
net revenue) in the comparable 2022 period. This decrease was
primarily due to higher costs for expenses related to the launch of
new technology to support our financing partners as well as legal,
accounting, and consulting expenses related to the Business
Combination.
- Adjusted EBITDA, a non-GAAP measurement of operating
performance reconciled below, decreased to $1.3 million (5.6% of
net revenue) from approximately $1.5 million (6.7% of net revenue)
in the comparable 2022 period.
Full Year 2023 Financial ResultsResults compare
the full year ended December 31, 2023 to the full year ended
December 31, 2022 unless otherwise indicated.
- Net revenue totaled $110.1 million, a 23.7% increase from $89.0
million in the comparable 2022 period. This increase was primarily
due to recruiting a greater number of sales reps and sales
dealerships to work with Sunergy.
- Gross profit increased to $20.2 million (18.3% of net revenue)
from $16.0 million (18.0% of net revenue) for the comparable 2022
period. The increase in gross profit was driven by the increase in
net revenue.
- Net income decreased to $6.2 million (5.7% of net revenue) from
$8.7 million (9.7% of net revenue) in the comparable 2022 period.
This decrease was primarily due to one-time costs associated with
the Business Combination.
- Adjusted EBITDA, a non-GAAP measurement of operating
performance reconciled below, increased to $11.2 million (10.2% of
net revenue) from approximately $10.4 million (11.7% of net
revenue) in the comparable 2022 period.
- As of December 31, 2023, cash and cash equivalents totaled $8.0
million, compared to $4.3 million at September 30, 2023 and $2.3
million at December 31, 2022.
For more information, please visit the Zeo investor relations
website at investors.zeoenergy.com.
About Zeo Energy Corp. Zeo Energy Corp. is a
Florida-based regional provider of residential solar, distributed
energy, and energy efficiency solutions. Zeo is focused on high
growth markets with limited competitive saturation. With its
differentiated sales approach and vertically integrated offerings,
Zeo, through its subsidiary, Sunergy by Zeo Energy, serves
customers who desire to reduce high energy bills and contribute to
a more sustainable future.
Non-GAAP Financial Measures
Adjusted EBITDAZeo Energy defines Adjusted
EBITDA, a non-GAAP financial measure, as net income
(loss) before interest and other expenses, net, income tax expense,
depreciation and amortization, as adjusted to exclude stock-based
compensation and merger and acquisition expenses (“M&A
expenses”). Zeo utilizes Adjusted EBITDA as an internal
performance measure in the management of the Company’s operations
because the Company believes the exclusion of
these non-cash and non-recurring charges allows
for a more relevant comparison of Zeo’s results of operations to
other companies in the industry. Adjusted EBITDA should not be
viewed as a substitute for net loss calculated in accordance with
GAAP, and other companies may define Adjusted EBITDA
differently.
The following table provides a reconciliation of net income
(loss) to Adjusted EBITDA for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
Three months ended December 31, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
$ |
6,230,438 |
|
$ |
8,665,770 |
|
$ |
(139,439 |
) |
|
$ |
1,081,412 |
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
123,996 |
|
|
51,295 |
|
|
84,158 |
|
|
|
13,335 |
Taxes |
|
- |
|
|
- |
|
|
- |
|
|
|
- |
Depreciation and amortization |
|
1,860,188 |
|
|
1,706,243 |
|
|
413,562 |
|
|
|
444,036 |
Other expense, net |
|
183,401 |
|
|
2,510 |
|
|
190,383 |
|
|
|
4,938 |
Merger transaction expenses |
|
2,820,605 |
|
|
- |
|
|
767,179 |
|
|
|
- |
Adjusted
EBITDA |
$ |
11,218,628 |
|
$ |
10,425,818 |
|
$ |
1,315,843 |
|
|
$ |
1,543,721 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA MarginZeo Energy defines
Adjusted EBITDA margin, a non-GAAP financial measure,
expressed as a percentage, as the ratio of Adjusted EBITDA to
revenue, net. Adjusted EBITDA margin measures net income (loss)
before interest and other expenses, net, income tax expense,
depreciation and amortization, as adjusted to M&A expenses and
is expressed as a percentage of revenue. In the table above,
Adjusted EBITDA is reconciled to the most comparable GAAP measure,
net income (loss). Zeo utilizes Adjusted EBITDA margin as an
internal performance measure in the management of the Company’s
operations because the Company believes the exclusion of
these non-cash and non-recurring charges allows
for a more relevant comparison of the Company’s results of
operations to other companies in Zeo’s industry.
The following table sets forth Zeo’s calculations of Adjusted
EBITDA margin for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
Three months ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator: Adjusted EBITDA |
$ |
11,218,628 |
|
|
$ |
10,425,818 |
|
|
$ |
1,315,843 |
|
|
$ |
1,543,721 |
|
Denominator:
Revenue, net |
$ |
110,066,601 |
|
|
$ |
88,963,855 |
|
|
$ |
23,361,581 |
|
|
$ |
22,894,599 |
|
Ratio of
Adjusted EBITDA to revenue, net |
|
10.2 |
% |
|
|
11.7 |
% |
|
|
5.6 |
% |
|
|
6.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Forward-Looking StatementsThis news release
contains forward-looking statements within the meaning of section
27A of the Securities Act of 1933, as amended (the “Securities
Act”), and Section 21E of the Exchange Act of 1934, as amended,
that are based on beliefs and assumptions and on information
currently available to Zeo. Forward-looking statements include, but
are not limited to, statements that refer to projections,
forecasts, or other characterizations of future events or
circumstances, including any underlying assumptions. The words
“anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,”
“project,” “estimate,” “expect,” “strategy,” “future,” “likely,”
“may,” “should,” “will,” and similar references to future periods
may identify forward-looking statements, but the absence of these
words does not mean that a statement is not forward-looking.
Forward-looking statements may include, for example, statements
about the benefits of the Business Combination; the future
financial performance of Zeo following the Business Combination;
changes in Zeo’s strategy, future operations, financial position,
estimated revenues and losses, projected costs, prospects, the
ability to raise additional funds after the Business Combination,
and plans and objectives of management. These forward-looking
statements are based on information available as of the date of
this news release, and current expectations, forecasts, and
assumptions, and involve a number of judgments, risks, and
uncertainties. Accordingly, forward-looking statements should not
be relied upon as representing Zeo’s views as of any subsequent
date, and Zeo does not undertake any obligation to update
forward-looking statements to reflect events or circumstances after
the date they were made, whether as a result of new information,
future events, or otherwise, except as may be required under
applicable securities laws. You should not place undue reliance on
these forward-looking statements. As a result of a number of known
and unknown risks and uncertainties, Zeo’s actual results or
performance may be materially different from those expressed or
implied by these forward-looking statements. Some factors that
could cause actual results to differ include: (i) the outcome of
any legal proceedings that may be instituted against Zeo or others
related to the Business Combination; (ii) the company’s success in
retaining or recruiting, or changes required in, its officers, key
employees, or directors following the Business Combination; (iii)
the Company’s ability to maintain the listing of its common stock
and warrants on the Nasdaq following the Business Combination; (iv)
the risk that the Business Combination disrupts current plans and
operations of Zeo; (v) the ability to recognize the anticipated
benefits of the Business Combination; (vi) limited liquidity and
trading of the Company’s securities; (vii) geopolitical risk and
changes in applicable laws or regulations; (viii) the possibility
that Zeo may be adversely affected by other economic, business,
and/or competitive factors; (ix) operational risk; (x) litigation
and regulatory enforcement risks, including the diversion of
management time and attention and the additional costs and demands
on Zeo’s resources; and (xi) other risks and uncertainties,
including those included under the heading “Risk Factors” in the
Annual Report on Form 10-K filed with the SEC for the year ended
December 31, 2023 and in its subsequent periodic reports and other
filings with the SEC. In light of the significant uncertainties in
these forward-looking statements, you should not regard these
statements as a representation or warranty by Zeo, their respective
directors, officers or employees or any other person that Zeo will
achieve their objectives and plans in any specified time frame, or
at all. The forward-looking statements in this news release
represent the views of Zeo as of the date of this news release.
Subsequent events and developments may cause that view to change.
However, while Zeo may elect to update these forward-looking
statements at some point in the future, there is no current
intention to do so, except to the extent required by applicable
law. You should, therefore, not rely on these forward-looking
statements as representing the views of Zeo as of any date
subsequent to the date of this news release.
Zeo Energy Corp. Contacts
For Investors:Tom Colton and Chris Adusei-PokuGateway
GroupZEO@gateway-grp.com
For Media: Zach Kadletz and Anna RutterGateway
GroupZEO@gateway-grp.com
-Financial Tables to Follow-
|
|
|
|
|
|
|
SUNERGY
RENEWABLES, LLC AND SUBSIDIARIES |
CONSOLIDATED
BALANCE SHEETS |
(Audited) |
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
|
2023 |
|
|
2022 |
Assets |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
8,022,306 |
|
$ |
2,268,306 |
Accounts receivable, including $396,488 and $0 from related
parties, net of allowance for credit losses of $2,270,620 and
$742,772, as of December 31, 2023 and 2022, respectively |
|
|
2,970,705 |
|
|
564,279 |
Inventories |
|
|
350,353 |
|
|
287,146 |
Prepaid intallation costs |
|
|
4,705,519 |
|
|
119,755 |
Prepaid expenses and other current assets |
|
|
40,403 |
|
|
102,255 |
Total current assets |
|
|
16,089,286 |
|
|
3,341,741 |
Other assets |
|
|
62,140 |
|
|
62,140 |
Property, equipment and other fixed assets, net |
|
|
2,918,320 |
|
|
1,699,720 |
Operating lease right of use assets |
|
|
1,135,668 |
|
|
1,017,717 |
Intangibles, net |
|
|
771,028 |
|
|
2,069,358 |
Goodwill |
|
|
27,010,745 |
|
|
27,010,745 |
Total assets |
|
$ |
47,987,187 |
|
$ |
35,201,421 |
|
|
|
|
|
|
|
Liabilities and members' equity |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
3,785,755 |
|
$ |
198,057 |
Accrued expenses and other current liabilities, including
$2,415,966 and $0 with related parties at December 31, 2023 and
2022, respectively |
|
|
3,874,697 |
|
|
369,082 |
Due to officers - related party |
|
|
- |
|
|
104,056 |
Current portion of long-term debt |
|
|
404,871 |
|
|
229,842 |
Current operating lease liabilities |
|
|
539,599 |
|
|
473,797 |
Contract liabilities, including $1,160,848 and $0 with related
parties as of December 31, 2023 and 2022, respectively |
|
|
5,023,418 |
|
|
1,149,047 |
Total current liabilities |
|
|
13,628,340 |
|
|
2,523,882 |
Non-current operating lease
liabilities |
|
|
636,414 |
|
|
580,980 |
Long-term debt |
|
|
1,389,545 |
|
|
820,714 |
Total liabilities |
|
|
15,654,299 |
|
|
3,925,575 |
Commitments
and contingencies (Note 12) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Members' Equity |
|
|
32,332,888 |
|
|
31,275,846 |
Total liabilities and members' equity |
|
$ |
47,987,187 |
|
$ |
35,201,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUNERGY
RENEWABLES, LLC AND SUBSIDIARIES |
CONSOLIDATED
STATEMENTS OF OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Audited) |
|
(Unaudited) |
|
Year ended December 31, |
|
Three months ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue, net
of financing fees of $45,064,634 and $32,485,288 for the years
ended December 31, 2023 and 2022, respectively |
$ |
94,601,749 |
|
|
$ |
88,963,855 |
|
|
$ |
7,896,729 |
|
|
$ |
22,894,599 |
|
Related
party revenue, net of financing fees of $6,851,232 and $0 for the
years ended December 31, 2023 and 2022, respectively |
|
15,464,852 |
|
|
|
- |
|
|
|
15,464,852 |
|
|
|
- |
|
Total revenue, net |
|
110,066,601 |
|
|
|
88,963,855 |
|
|
|
23,361,581 |
|
|
|
22,894,599 |
|
Operating
costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold (exclusive of items shown below) |
|
88,030,259 |
|
|
|
71,208,982 |
|
|
|
19,826,060 |
|
|
|
19,524,217 |
|
Depreciation and amortization |
|
1,860,188 |
|
|
|
1,706,243 |
|
|
|
413,562 |
|
|
|
444,036 |
|
Sales and marketing |
|
1,157,910 |
|
|
|
1,399,452 |
|
|
|
(7,688,244 |
) |
|
|
(3,056,164 |
) |
General and administrative |
|
12,480,409 |
|
|
|
6,003,412 |
|
|
|
10,675,101 |
|
|
|
4,882,825 |
|
Total operating expenses |
|
103,528,766 |
|
|
|
80,318,089 |
|
|
|
23,226,479 |
|
|
|
21,794,914 |
|
Income from operations |
|
6,537,835 |
|
|
|
8,645,766 |
|
|
|
135,102 |
|
|
|
1,099,685 |
|
Other income
(expense), net: |
|
|
|
|
|
|
|
|
|
|
|
Other expense, net |
|
(183,401 |
) |
|
|
(2,510 |
) |
|
|
(190,383 |
) |
|
|
(4,938 |
) |
PPP loan forgiveness |
|
- |
|
|
|
73,809 |
|
|
|
- |
|
|
|
- |
|
Interest expense |
|
(123,996 |
) |
|
|
(51,295 |
) |
|
|
(84,158 |
) |
|
|
(13,335 |
) |
Total other income (expense), net |
|
(307,397 |
) |
|
|
20,004 |
|
|
|
(274,541 |
) |
|
|
(18,273 |
) |
Net
income |
$ |
6,230,438 |
|
|
$ |
8,665,770 |
|
|
$ |
(139,439 |
) |
|
$ |
1,081,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income per common unit |
$ |
6.23 |
|
|
$ |
8.67 |
|
|
$ |
(0.14 |
) |
|
$ |
1.08 |
|
Weighted average units outstanding, basic and diluted |
|
1,000,000 |
|
|
|
1,000,000 |
|
|
|
1,000,000 |
|
|
|
1,000,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUNERGY
RENEWABLES, LLC AND SUBSIDIARIES |
CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(Audited) |
|
|
|
|
|
|
|
Year ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
Cash
Flows from Operating Activities |
|
|
|
|
|
Net
income |
$ |
6,230,438 |
|
|
$ |
8,665,770 |
|
Adjustment
to reconcile net loss to cash used in operating activities |
|
|
|
|
|
Depreciation and amortization |
|
1,860,188 |
|
|
|
1,706,243 |
|
PPP loan forgiveness |
|
- |
|
|
|
(73,809 |
) |
Provision for credit losses |
|
1,531,223 |
|
|
|
742,772 |
|
Amortization of right of use asset |
|
550,425 |
|
|
|
- |
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
Accounts receivable |
|
(3,541,161 |
) |
|
|
(916,993 |
) |
Accounts receivable dur from related parties |
|
(396,488 |
) |
|
|
- |
|
Inventories |
|
(63,207 |
) |
|
|
(287,146 |
) |
Prepaid installation costs |
|
(4,585,764 |
) |
|
|
- |
|
Prepaids and other current assets |
|
61,852 |
|
|
|
(108,671 |
) |
Other assets |
|
- |
|
|
|
(51,930 |
) |
Accounts payable |
|
3,587,698 |
|
|
|
(477,649 |
) |
Accrued expenses and other current liabilties |
|
1,089,619 |
|
|
|
268,255 |
|
Accrued expenses and other current liabilties due to related
parties |
|
2,415,996 |
|
|
|
- |
|
Due to officers |
|
(104,056 |
) |
|
|
104,056 |
|
Contract liabilities |
|
2,713,523 |
|
|
|
1,149,047 |
|
Contract liabilities due to related parties |
|
1,160,848 |
|
|
|
- |
|
Operating lease payments |
|
(547,140 |
) |
|
|
- |
|
Net cash provided by operating activities |
|
11,963,994 |
|
|
|
10,719,945 |
|
|
|
|
|
|
|
Cash
flows from Investing Activities |
|
|
|
|
|
Purchases of
property, equipment and other assets |
|
(1,780,458 |
) |
|
|
(1,077,628 |
) |
Net cash used in investing activities |
|
(1,780,458 |
) |
|
|
(1,077,628 |
) |
|
|
|
|
|
|
Cash
flows from Financing Activities |
|
|
|
|
|
Proceeds
from the issuance of debt |
|
1,057,004 |
|
|
|
561,795 |
|
Repayments
of debt |
|
(313,144 |
) |
|
|
(181,109 |
) |
Distributions to members |
|
(5,173,396 |
) |
|
|
(8,205,543 |
) |
Net cash used in financing activities |
|
(4,429,536 |
) |
|
|
(7,824,857 |
) |
Net increase
in cash and cash equivalents |
|
5,754,000 |
|
|
|
1,817,460 |
|
Cash and
cash equivalents, beginning of period |
|
2,268,306 |
|
|
|
450,846 |
|
Cash
and cash equivalents, end of the period |
$ |
8,022,306 |
|
|
$ |
2,268,306 |
|
|
|
|
|
|
|
Supplemental Cash Flow Information |
|
|
|
|
|
Recording of
right of use asset and lease liability |
$ |
668,376 |
|
|
$ |
- |
|
Cash paid
for interest |
$ |
93,176 |
|
|
$ |
54,738 |
|
|
|
|
|
|
|
Zeo Energy (NASDAQ:ZEO)
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De Out 2024 até Nov 2024
Zeo Energy (NASDAQ:ZEO)
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De Nov 2023 até Nov 2024