RONKONKOMA, N.Y., Aug. 26, 2024 (GLOBE NEWSWIRE) — In a release issued under the same headline earlier today by Pineapple Energy Inc. (Nasdaq: PEGY), please note that the figures in Highlights from Pineapple’s New York Subsidiary SUNation and Pineapple Energy’s financial highlights in Q2 have been amended. The corrected release follows:
Pineapple Energy Inc. (Nasdaq: PEGY) (Pineapple Energy) (Pineapple or the Company), a leading provider of sustainable solar energy and backup power to households, businesses, municipalities and for servicing existing systems, is providing an update on the performance of its ongoing business activities, with the goal of giving context to the Company’s recently filed earnings report.
Our results for the second quarter of 2024 reflected the lingering impact of certain industry-specific headwinds that have affected the renewable energy sector across the United States, said Scott Maskin, Interim CEO of Pineapple. These headwinds “ which masked progress across various aspects of our operations – are beginning to diminish, Maskin said.
While we are not satisfied with some of the metrics captured within our recently filed earnings statement, including seeing some disappointing news in the performance of our battery attachment rate within our Hawaii business as the Battery Bonus Program is in redesign at the utility and state level, and the delayed start to projects within our commercial pipelines of our New York business, some of these factors have already, or are likely to, abate as of writing.
We also incurred cash and non-cash charges and expenses related to our ongoing corporate restructuring efforts, as well as charges and valuation adjustments related to previously issued debt and equity instruments. We fully expect that the second half of the year, notably on the commercial side of the business, will show marked improvement when compared to the first six months of 2024. Over time, our recent and continuing restructuring efforts across Q2 will bear fruit as overhead is reduced, and OpEx is driven lower, Maskin added.
Mr. Maskin noted that the performance at SUNation, Pineapple’s New York subsidiary, produced favorable comparisons in several key regional metrics during the first six months of 2024 compared to the same period last year, as well as in comparison to the full year 2023.
Highlights from Pineapple’s New York Subsidiary SUNation include:
- SUNation systems sold up 22% year over year
- Overall kilowatts (KW) sold, up 21% year over year
- Systems sold via client referrals, up 19% year over year
- Total invoice value per sale, up 11% year over year
- Overall client acquisition cost (), down 4% year over year
- Operating expenses, down $553k year over year
Mr. Maskin continued, Our commercial and industrial solar projects often take longer to materialize when compared to our residential work, as was reflected in our results for the first half of the year. A number of material commercial projects that had been delayed in the first half of 2024 are now fully underway and the positive financial impact of these projects on our financial results should start to be reflected beginning in the third quarter. Our efforts to diversify our revenues via a mix of business is also evolving in a positive manner, as evidenced by a 46% increase in commercial contract sales during the second quarter when compared to the same period last year.
These figures highlight the opportunity within this growing segment of our business, as well as the volatility of the pipelines.
Overall, Pineapple Energy’s financial highlights in Q2 included:
- Quarterly Revenues of $13,549,420
- Operating expenses decreased 20% from Q2 2023
- Gross Profit decreased 33% from Q2 2023
- Operating losses increased 43% from Q2 2023
Pineapple’s complete financial performance for the second quarter of 2024 can be found in our quarterly report on form 10-Q here.
I’m incredibly thankful to our shareholders for their constant notes of encouragement and arming me with the tools necessary to address the industry pressures affecting our Company, Mr. Maskin continued stated. The increased share authorization announced in July provides the Company with the opportunity to potentially access the capital markets to fund our future growth initiatives, with a focus on acquiring the best regional solar companies in the industry, he noted. The authorization also had a material positive impact on the accounting for certain outstanding debt and capital instruments, with these changes likely to be reflected in our third quarter results and future periods.
As a veteran in the solar space, my team and I have capitalized through the highest peaks of the solar coaster and have sustained our position through the absolute lowest points. We are laser focused on cleaning up every single obstruction that is preventing us from executing on our corporate strategy. We remain committed to elevating our corporate governance, aligning our operations, and refining our strategy to most effectively and efficiently address the significant long-term market opportunities we believe exist in our industry. The reimagined Pineapple Energy comes with amazing new board members, corporate leadership changes, OpEx reductions, and capital stack modifications.
What will never change is our dedication to you our shareholders, our employees, and our customers. We believe that Pineapple Energy is uniquely positioned to emerge as a national industry leader. I have never been more excited about the future and our place in it.
Forward Looking Statements
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth, and future opportunities. These statements are based on Pineapple Energy’s current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements here due to changes in economic, business, competitive or regulatory factors, and other risks and uncertainties, set forth in the company’s filings with the Securities and Exchange Commission. The forward-looking statements in this press release speak only as of the date of this press release. Pineapple Energy does not undertake any obligation to update or revise these forward-looking statements for any reason, except as required by law.
About Pineapple Energy
Pineapple is focused on growing leading local and regional solar, storage, and energy services companies nationwide. Our vision is to power the energy transition through grass-roots growth of solar electricity paired with battery storage. Our portfolio of brands (SUNation Energy, Hawaii Energy Connection, E-Gear) provide those within the Residential and Commercial sectors an end-to-end product offering spanning solar, battery storage, and grid services.
Contacts:
Scott Maskin
Interim Chief Executive Officer
+1 (631) 823-7131
SMaskin@sunation.com
Pineapple Investor Relations
IR@pineappleenergy.com
Source: Pineapple Energy
