VANCOUVER, BC, and SAN DIEGO, CA--(Marketwired - November 14, 2016) - Solar Alliance Energy, Inc. ('Solar Alliance') or (the 'Company') (TSX VENTURE: SAN) (OTCQB: SAENF), a solar sales, marketing and development company, has released its unaudited consolidated financial results for the third quarter as well as the year-to-date as of September 30, 2016.
"Sales revenue at Solar Alliance has grown 300% compared to the same quarter in 2015 and 770% when compared to the nine-months ending in September 2015. We anticipate that strong growth will continue throughout the remainder of the year," said Solar Alliance Chairman and CEO Jason Bak. "Currently, Solar Alliance has an order backlog of approximately $2,900,000, which will be recognized as net income as these solar systems are installed in the coming months. Our team continues to reduce customer acquisition costs and streamline the installation process, while creating a customer experience that is second to none. As a direct result of strengthening our San Diego-based management team in order to scale our business and improve profit margins, we expect profitability in early 2017."
Q3 Corporate Highlights
- Agreement with Camp Pendleton Marine Corps Base. Signed an agreement with the Marine Corps Community Services (MCCS) at Camp Pendleton in San Diego to market residential solar systems to active duty, retired and civilian employees. The contract allows Solar Alliance to market to more than 70,000 daily visitors to Camp Pendleton, which is the largest Marine Corps base in the world.
- New Commercial and Industrial Sales Division. Launched a Commercial and Industrial (C&I) Solar Division that is based is San Diego and targets customers for larger solar installations (50kW-2MW) throughout the United States offering high ROIs for investors.
- Expanded Operations in California. The Company opened a new office in Temecula that will serve the Inland Empire region.
- New 500kW Solar + Storage Project in Illinois. As part of a commitment to the Clinton Global Initiative, the Company announced the development of a 500kW Solar Project in Illinois. "From Coal to Solar & Storage: Education Through Innovation" is an economic 500kW solar generation and battery storage project in Southern Illinois that includes a solar industry workforce redevelopment program for unemployed former coal industry workers.
- Optimized Business Operations. Implemented a low cost lead acquisition program that has significantly reduced lead acquisition costs for residential customers; implemented stricter processes to ensure streamlined installation timelines for solar systems; and, diversified installation and financing partners in order to maximize profit margins.
Compared to Q3 2015, sales revenues have grown 300% and 770% compared to the year-to-date revenue of 2015. As well, order backlog stands at approximately $2,900,000. Sales revenue for the three months ended September 30, 2016 increased to $1,785,334, compared to $1,570,255 in Q2 2016 and $1,244,538 in Q1 2016. The increasing sales numbers are a direct result of new systems and marketing programs initiated throughout the year. While sales have been increasing, costs have been managed appropriately. Lower operating costs have been driven by decreased marketing and advertising costs of $176,428 in the current quarter, compared to $476,852 in Q3 2015.
The Company reduced its net loss by 61% to $852,462 during Q3 2016 (compared to a net loss of $1,386,930 in Q3 2015) and increased its order backlog significantly due to higher closing ratios and an optimised sales and customer origination process. The order backlog is approximately $2,900,000 with revenue recognition being pushed to Q4 2016 and Q1 2017. The Company has streamlined the installation process and accelerated throughput speeds to ensure backlog is swiftly turned into sales revenue going forward.
Gross profit increased by 296% to $581,077, representing 33% gross margin for the three months ending September 30, 2016, compared to $196,102, or 33% gross margin in the quarter ended September 30, 2015.
The Company is forecasting successively greater margins through the close of 2016, and profitability moving into 2017.
Jason Bak, Chairman and CEO
About Solar Alliance Energy Inc. (www.solaralliance.com)
Solar Alliance is a sales, marketing and development company focused on residential, commercial and industrial solar installations. Since we were founded in 2003, we have developed wind and solar projects that provide enough electricity to power 150,000 homes. Solar Alliance is committed to an exceptional customer experience, effective marketing campaigns and superior lead generation in order to drive sales and generate value for shareholders. Our passion is improving life through ingenuity, simplicity and freedom of choice. We make solar simple and our goal is to install solar on every available rooftop in America.
Statements in this news release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute Forward-looking statements. The words "would", "will", "expected" and "estimated" or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different than those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related to the ability to raise sufficient capital, changes in economic conditions or financial markets, litigation, legislative or other judicial, regulatory and political competitive developments and technological or operational difficulties. Consequently, actual results may vary materially from those described in the forward-looking statements.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
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