SOLAR ALLIANCE RELEASES 2015 RESULTS
Solar Alliance Energy Inc. (SAN.V) has released its audited consolidated year-end financial statements and related management discussion and analysis (MD&A) for the year ended Dec. 31, 2015.
The Solar Alliance of America Acquisition: In June 2015, the Company completed the acquisition of Solar Alliance of America (‘SAOA’). Through this acquisition the Company now provides rooftop solar energy systems to homeowners, with its present operations focused in the San Diego area. The Company believes that solar energy adoption is still in the early stages and that the penetration of solar energy systems will continue to accelerate for the foreseeable future, due to the overwhelming positive economic returns associated with the transition to solar.
The Cloosh Valley Project Transaction: In December 2015, the Company received the final payment in relation the sale of the Cloosh Valley Project. The Company received euros7.14 million ($10,761,408) and used the proceeds to significantly repay outstanding loans and invest further in SAOA.
Net Income: Generated net income of $5.5 million (2014: $13.3 million) for the year. Income was comprised of operating losses of $3.4 million and net finance expense of $1.8 million offset by a gain on the Cloosh Sale of $10.7 million.
Earnings per share (basic and diluted): $0.12 per share (2014: $0.33 EPS)
Cash and Working Capital: Closed year-end with a working capital deficit of $4.9 million (2014: $6.1 million) and cash of $3.2 million largely resulting from the net proceeds received on the Cloosh Valley Project noted above.
In 2015, the Company had net income of $5.5 million (earnings per share of $0.12), compared to a net income of $13.3 million in the prior year, a decrease of $7.8 million. The 2015 net income was comprised of operating losses of $3.4 million and net finance expense of $1.8 million offset by a gain on the Cloosh Sale of $10.7 million. Finance fees and interest expenses in 2015 were $2.0 million compared to $1.0 million in 2014, an increase of $1.0 million as the result of significant borrowings in the year to fund the SAOA acquisition and operations while awaiting proceeds from Cloosh Valley Project sale.
Jason Bak, Solar Alliance Chairman and CEO, commented, “2015 was a year of change and significant growth for our company as we completed the acquisition of a San Diego solar company and received the final payment from the sale of our Cloosh Valley Wind Project. These two key events put the Company in much a stronger financial position with incredible growth potential. The market for solar energy is expanding at a rapid pace and we are perfectly positioned to take advantage of it. As outlined in our financial statements, the Company ended the year with earnings of $0.12 per share, representing a discount to our current share price. Most companies in the solar space trade at many multiples to earnings and we will accelerate our strategic investor relations campaign in order to close the disconnect between our earnings per share and our share price. Solar Alliance has a comprehensive plan for growth and revenue generation and telling that story to more investors will help bring our valuation in line with the underlying numbers.”