Community and commercial solar energy solutions firm UGE International Ltd. (UGE:TSX.V; UGEIF:OTCQB) announced in a news release its financial results for the first quarter of 2021 ended March 31, 2021.
The company stated that in Q1/21 it grew its project backlog, which exceeded 70 MW by quarter-end. The firm noted that its operations of developing, building, financing and operating commercial and community solar facilities continues on a steady pace and that it took several steps in the quarter to position itself for further growth including strengthening its balance sheet through a $5.03 million private placement equity capital raise and retiring approximately $1.3 million in debt.
UGE International listed some of the business and financial highlights during the latest quarter and stated that "it generated 103,341 kWh of energy, producing $25,829 in recurring revenue from three operating solar facilities in Q1/21, compared to 61,079 kWh and $16,242 from two operating solar facilities in Q4 2020 (and nil in Q1 2020)."
The firm pointed out that the positive uptick in power generation and revenue was achieved despite spite of a snowy winter season in the northeastern U.S.
The company advised that at the end of Q1/21, operating capacity at all its projects was 852 kW with another 359 kW currently in construction and 741 kW reaching fully contracted status and expected to be fully deployed and commence operations during Q2/21 or Q3/21.
UGE reported that for Q1/21, it realized $398,623 in one-time revenue from client-financed EPC (engineering, procurement and construction) agreements and engineering services, versus $640,013 in Q1/20 and $398,424 in Q4/20. The company explained that the decline was expected and consistent with its decision to change its business model from an emphasis on generating one-time revenue through EPC services to recurring revenues realized from a build, own and operate model.
The company advised that for Q1/21 it posted a net loss of $1.07 million or $0.04 per share, compared to a net loss of $0.89 million in Q1/20 and net income of $0.13 million in Q4/20. The firm noted that that the Q4/20 net income figure included net gains of $0.93 million related to a discounted settlement of certain liabilities.
The company stated that going forward it will be implementing a change in the way it structures its project development contracts. The firm indicated it will build and finance the bulk of the solar projects it undertakes and will then benefit from long term recurring revenue and positive cash flows generated by the projects. UGE said that the strategy will increase the firm's assets and will add recurring revenue streams. The company noted that this new financing structure is quite different from its prior approach where it largely generated one-time services revenue for meeting milestones.
The company’s CEO Nick Blitterswyk remarked, "I am proud of our team’s work in the past 15 months to position UGE for success going forward…In 2021, boosted by a stronger balance sheet and new additions to the team, we continue to expand and progress our pipeline with quality development assets, as we work towards our medium-term goal of reaching 100MW in operating capacity by 2024."
The firm advised that the complete set of financial results along with management's discussion and analysis are posted to SEDAR (www.sedar.com) and its own website for review.
UGE International is a developer, owner and operator of community and commercial turn-key solar power projects in the U.S. and internationally. The company has successfully designed, built and deployed sustainable projects totaling 400 MW.
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