Communications Systems, Inc. Merger Partner Pineapple Systems Sees HEC And E-Gear Revenue Of $8.4M-$8.6M For Quarter Ended Dec. 30

Pineapple Energy LLC (“Pineapple”), a leading provider of sustainable solar energy and back-up power and security to households, today announced preliminary unaudited combined revenue results for Hawaii Energy Connection (“HEC”) and E-Gear (“E-Gear”), which have agreed to be acquired by Pineapple in connection with Pineapple’s proposed merger transaction with Communications Systems, Inc. (NASDAQ:JCS).

Selected Preliminary Fourth Quarter and Full Year 2021 Financial Results (unaudited)

• For the quarter ended December 31, 2021, HEC and E-Gear combined revenue is expected to range from $8.4 million to $8.6 million,
• For the year ended December 31, 2021, HEC and E-Gear combined revenue is expected to range from $19.1 million to $19.3 million.

These preliminary and estimated combined financial results are based on management’s initial review of operations for the fiscal quarter and year ended December 31, 2021 and remain subject to completion of HEC’s and E-Gear’s customary closing and review procedures and final adjustments and other developments that may arise between now and the time the financial results for the periods are finalized. It is possible that the final reported results may differ materially from the information provided in this release.

Guidance

Based on this strong performance in the fourth quarter of 2021, as well as trends to-date in 2022, Pineapple and HEC currently anticipate HEC’s and E-Gear’s combined revenues for the full year 2022 full-year to range from approximately $23 million to $25 million, representing growth of 20% to 30%, respectively.

Commentary

Chris DeBone, Managing Partner of HEC, commented, “Our anticipated financial results for Q4 2021 were characterized by rapid growth and solid profitability.   We believe demand is strong across Hawaii, as homeowners and businesses continue to take advantage of the compelling financial and environmental benefits, as well as peace-of-mind, that come with solar power paired with battery storage. Specifically, the Battery Bonus Program launched in the second half of 2021 by our local utility, Hawaiian Electric, in conjunction with the Public Utilities Commission, has driven substantial demand in the marketplace. And with the program recently being expanded and enhanced on March 1st, we believe demand will continue to be strong again throughout 2022. With over ¾ of Hawaii’s electrical supply coming from fossil fueled sources—many depending on Russian oil—we believe there is vast room for growth for HEC in just this state alone.”

Kyle Udseth, Co-Founder and CEO of Pineapple, explained, “HEC’s anticipated strong results demonstrate the power of its business model. Pineapple intends to use the HEC formula as we plan to roll out across the rest of the country through both organic growth and acquisitions. We believe Hawaii will be a great market for us, yet it only scratches the surface of our growth opportunity.”