SOURCE: Solar Energy Initiatives

June 17, 2010 08:51 ET

Solar Energy Initiatives, Inc. Announces Record Results for the Third Quarter 2010

Quarterly Revenue Increases 58% Year Over Year; Nine Month Revenue Increases 146% to $3 Million

PONTE VEDRA BEACH, FL--(Marketwire - June 17, 2010) -  Solar Energy Initiatives, Inc. (OTCBB: SNRY), with businesses in solar project development, distribution and workforce training, today announced financial results for the quarter ended April 30, 2010.

"Management is pleased with the sustained financial and operational growth that the company has experienced throughout 2010," said Mr. David Fann, CEO of Solar Energy Initiatives. "The current year has been a time of escalating financials and market expansion. We have experienced a rapid increase in sales in our Solar Panel division, and initiated projects in several new geographic regions. Going forward, management will continue to leverage our emerging sales division, SNRY Solar, our 100,000 municipal relationships, and the numerous government tax incentives related to solar energy in order to increase earnings, and improve our overall market value."

2010 Third Quarter Financial Results

For the three months ended April 30, 2010, we had revenues of $732,199 compared to $463,570 for the three months ended April 30, 2009. Revenues for the three months ended April 30, 2010 reflect dealer training and sales of solar energy systems and equipment. 

For the three months ended April 30, 2010 Solar Energy's Cost of Goods Sold were $600,979 compared to $267,409 for the three months ended April 30, 2009, resulting in a gross profit from operations of $131,221 compared to $196,161 respectively. The increase in cost of sales is a result of increased sales of lower margin PV panels during the period compared to prior year and reduced sales of higher margin thermal and solar hot water systems.

Selling, general and administrative ("S, G & A") expenses for the three months ended April 30, 2010 were $1,631,219 compared with $784,730 for the same period ending April 30, 2009. 

For the three months ended April 30, 2010 interest expense was $48,225, due to interest related to, loans from shareholders, and note interest, compared with $102,075 for the same period ending April 30, 2009. Other expenses for the three months ended April 30, 2010 were $431,310 compared to $3,059.

Our net loss attributable to Solar Energy Initiatives, Inc. was $1,813,544 for the three months ended April 30, 2010 compared with $693,703 for the period ending April 30, 2009. The net loss primarily reflects our expenses relating to business activities that have been incurred ahead of our ability to recognize material revenues from our business plan.

NINE MONTHS ENDED APRIL 30, 2010 AND APRIL 30, 2009

For the nine months ended April 30, 2010, we had revenues of $3,017,656 compared to $1,224,908 for the nine months ended April 30, 2009. Revenues for this nine month period reflect dealer training, a municipality project and sales of solar systems and equipment.

For the nine months ended April 30, 2010 our Cost of Goods Sold were $2,325,515 compared to $783,058, resulting in a gross profit from operations of $692,141 (22.9%) compared to $441,850 (36.1%) for the period ending April 30, 2009.

Selling, general and administrative expenses for the nine months ended April 30, 2010 were $4,126,215 compared with $2,474,602 for the same period ending April 30, 2009. The net loss attributable to Solar Energy Initiatives, Inc. was $3,731,632 for the nine months ended April 30, 2010 compared with $2,217,019 for the period ending April 30, 2009. 

Recent Operational Highlights

  • Announced the Company's SNRY Solar Inc. division had record solar panel revenue for the month of April. The thirty day total of $358,000 represents sequential monthly growth of 85%.
  • The Company has initiated the first of 2 phases of a 1 MW solar energy installation on a southeast municipality.
    •  The first stage is a 500 KW project, which is fully funded and expected to recognize $1.5 million in revenue in the 4th quarter ended July 31, 2010.
  • SNRY announced a program with the State of South Carolina and the North Eastern Strategic Alliance (NESA) to drive job creation and economic development through solar energy.
    • The first phase of the project involves the configuration of the 6,000-square-foot solar academy training center. Construction began in the spring of 2010 with a ground-breaking ceremony to be announced at a future date.
  • The Company appointed Mr. Eric Johnson and Ms. Ellen Leroy-Reed to the company's management team.
    •  The Company reorganized operation along product lines. The Company has established two new wholly owned subsidiaries with their operating people having P&L responsibility for their group.
    • SNRY Solar is a division which will sell and distribute solar panels across the United States.
  • Opened its first public sector Technical Training School.
    • The eight week long class will provide attendees with the tools and the technical knowledge to become certified solar technicians.

Mr. Fann continued, "We are encouraged with the positive upward trending as we strive to establish ourselves as the industry leader in solar energy service solutions. The Company believes that the recent key management additions coupled with previously cemented relationships have SNRY well positioned for significant near term growth and long term stability. We look forward to capitalizing on the numerous outstanding prospects that are presently available to us while at the same time uncovering new profitable opportunities."

Conference Call

Solar Energy Initiatives will host a conference call on Thursday, June 24, 2010 at 4:30 p.m. Eastern Time to discuss the Company's financial and operational results for the Third Quarter 2010. If calling within the United States please dial 1-877-941-2069 or if calling internationally, please 1-480-629-9713 approximately 5 to 10 minutes prior to 4:30 p.m. (EDT) start time. Participants should ask for the Solar Energy Initiatives Third Quarter 2010 Financial Results conference call. There will be a playback available until July 01, 2010. To listen to the playback, please call 1-877-870-5176 if calling within the United States or 1-858-384-5517 if calling internationally. Please use the pass code 4318602 for replay. A live audio webcast of the conference call will also be available at http://www.solarenergy.com/.

About Solar Energy Initiatives, Inc.

Solar Energy Initiatives, Inc. (OTCBB: SNRY), is a diversified provider of solar solutions with three principal operating groups focused on large-scale projects, solar education and distribution of solar products. SNRY Power is a developer and manager of municipal and commercial scale solar projects. The SolarEos Group is dedicated to the education and continuous improvement of solar energy trade professionals. SNRY Solar is a wholesale distributor of branded photovoltaic and thermal (water heating) systems selling via a network of dealers throughout the United States and the Caribbean. Solar Energy Initiatives also owns SolarEnergy.com, one of the most visited solar websites on the internet and a digital property committed to driving consumer traffic, while serving as a platform for awareness of the benefits of solar and a source of business lead generation to SNRY Solar's channel partners. Through its diversified portfolio of solar businesses, Solar Energy Initiatives, Inc.is committed to restoring the nation's economy through a grassroots campaign called "Renew the Nation." Renew the Nation brings together a broad alliance of public and private sector interests focused on workforce development, job creation and economic growth through solar energy. For more information please visit http://www.solarenergy.com/.

Contact Information

  • Contact:

    Investors:

    Solar Energy Initiatives, Inc.
    David Fann
    Chief Executive Officer
    904-644-6090
    Email Contact

    or

    Alliance Advisors, LLC
    Chris Camarra or Bryan Kobel
    212-398-3487
    Email Contact