Array Technologies, Inc. (Nasdaq: ARRY), one of the world’s largest providers of utility-scale solar tracking technology, today announced financial results for its third quarter ended September 30, 2021.
Third Quarter 2021 Financial Results:
Revenue increased from last prior quarter by over 38 per cent from $139 million to $192 million, due to order book conversion, increased demand for solar trackers, and market share gains.
Gross profit decreased 65% to $9.3 million compared to $26.7 million in the prior-year period, driven primarily by higher raw material input and logistics costs.
Gross margin decreased to 4.8% from 19.2% driven by higher raw material and freight costs, partially offset by greater absorption of fixed costs as a result of higher sales volumes compared to the prior-year period.
Adjusted EBITDA loss of $0.5 million due to lower gross margins and
higher SG&A from public company costs and higher payroll-related costs
as a result of an increase in headcount.
Operating expenses decreased to $25.4 million compared to $31.8 million during the same period in the prior year, primarily due to a lower contingent consideration expense of $12.7 million.
This decrease was partially offset by higher costs associated with being a public company and increased payroll-related costs due to higher headcount.
The adjusted net loss was $9.8 million compared to the adjusted net income of $12.4 million during the same period in the prior year.
Adjusted basic and diluted adjusted net loss per share was $0.07 compared to adjusted net income per share of $0.10 during the same period in the prior year.
“In the third quarter, we grew revenues 38%, generated over $315 million of new orders – the second-highest level of quarterly bookings in our history – and ended the quarter with more than $1 billion in executed contracts and awarded orders, which is a new record for our company.
Our results in the quarter demonstrate that the changes we made to our quoting and procurement processes have not impacted demand for our products or inhibited our ability to deliver for our customers.
More importantly, we believe the third quarter represents the trough for our margins as it was the last quarter where the majority of our shipments were priced using our historical quoting and procurement processes. We expect that our gross margins should improve steadily over the next several quarters as new, higher-margin orders constitute a larger and larger proportion of our shipments and legacy, lower price orders constitute a smaller and smaller proportion of our shipments.” said Jim Fusaro, Chief Executive Officer of Array Technologies.
About Array Technologies, Inc.
Array Technologies (NASDAQ: ARRY) is a leading American company and global provider of utility-scale solar tracker technology. Engineered to withstand the harshest conditions on the planet, Array’s high-quality solar trackers and sophisticated software maximize energy production, accelerating the adoption of cost-effective and sustainable energy. Founded and headquartered in the United States, Array relies on its diversified global supply chain and customer-centric approach to deliver, commission, and support solar energy developments around the world, lighting the way to a brighter, smarter future for clean energy.
Financial statement :
| Array Technologies, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited)(in thousands, except share amounts) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 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 expenses, 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 | |||||
| The weighted average number of shares | ||||||||||||||||
| Basic | 130,955 | 119,994 | 128,315 | 119,994 | ||||||||||||
| Diluted | 130,955 | 119,994 | 128,315 | 119,994 | ||||||||||||
