Pineapple Energy Announces Preliminary Financial Results for Acquisition Partners Hawaii Energy Connection and E-Gear
WAYZATA, Minn., March 07, 2022 (GLOBE NEWSWIRE) -- 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."
Forward-Looking Statements
This document contains certain forward-looking statements. Any statements contained herein that are not statements of historical fact, including statements regarding the expected financial performance of HEC, are forward-looking. Pineapple often use words such as anticipates, believes, estimates, expects, intends, seeks, predicts, hopes, should, plans, will and similar expressions to identify forward-looking statements. These statements are based on management's current expectations and accordingly are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein due to various important factors, including (but not limited to): variability in consumer preferences, spending and debt levels; the general economic and credit environment, including COVID-19; interest rates; seasonal variations in consumer purchasing activities; the Company's ability to establish and maintain acceptable commercial terms with third-party vendors and other third parties with whom the Company has contractual relationships, and to successfully manage key vendor and shipping relationships; the Company's working capital levels; customer acceptance of the Company's products; changes in technology; litigation or governmental proceedings affecting the Company's operations; significant events (including disasters, weather events or events attracting significant television coverage); the Company's ability to obtain and retain key executives and employees; the Company's ability to attract new customers; changes in shipping costs; The Company is under no obligation (and expressly disclaim any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
About Hawaii Energy Connection
Hawaii Energy Connection (HEC) is a locally owned, nationally recognized solar PV integrator, dedicated to providing affordable energy solutions in Hawaii. Its systems are right-sized to achieve peak energy production, maximize available incentives, and ultimately shrink customer's electric bill. HEC has agreed to be acquired by Pineapple Energy LLC upon closing of Pineapple's merger with Communications Systems Inc.
About E-Gear, LLC
E-Gear, LLC is a renewable energy innovation company offering proprietary patented and patent(s) pending edge-of-grid energy management and aggregation technologies. Its systems provide intelligent real-time adaptive control, use-case flexibility, visibility, predictability and support to renewable energy customers, solution providers, energy service companies (ESCO's) and Utilities. For more information, please visit: www.E-Gear.us
About Pineapple Energy LLC
Pineapple Energy was founded to acquire and grow leading local and regional solar, storage, and energy services companies nationwide. Pineapple's vision is to power the energy transition through grass-roots growth of solar electricity paired with battery storage on consumers' homes. Pineapple puts the customer at the heart of everything it does, building long-term relationships to create and share in recurring revenue from the electric grid of the future. Pineapple's cornerstone acquisitions of certain assets of Sungevity and Horizon Solar Power in December 2020 brought an installed customer base of 44,000+ solar customers across 12 states.
| Contacts: | |
| For Pineapple Energy LLC Kyle Udseth Chief Executive Officer +1 (952) 582-6460 [email protected] The Blueshirt Group Gary Dvorchak, CFA Managing Director +1 (323) 240-5796 [email protected] | |
For Hawaii Energy Connection
Chris DeBone
Managing Partner
+1 (808) 524-7336
[email protected]
