On Apr 22nd Surna announced preliminary Q1 record bookings of $5.5 million. That led to the 2nd largest backlog ever. Both favorable numbers. The revenue announced in May, however, did not match expectations. The 1Q revenue (due to equipment shipment delays…) was announced at $2.1 million.
Now Q2 preliminary revenue ($4.5 million) and operating income ($340K) have been reported. Both are favorable. Preliminary results are soothing however the actual report will include bookings, backlog, cash on hand... and may tell a different story.
Bookings in the 1Q were $5.5 mil and include a record contract signed in January. Apri-May-June bookings will likely be lower since there was no press release suggesting new major contracts.
Backlog was $11.6 at the end of 1Q. A conversion of 40% resulted in 2Q revenue of $4.5 mil, leaving $7.1 million in theory. Did bookings outpace revenue?
Cash on hand is hard to predict, in part because forgivable loans convert to cash. The 1Q ended with $3.3 million cash on hand.
Surna Reports Record Bookings in Preliminary First Quarter Results
April 22, 2021
Bookings up 388% First Quarter Year Over Year, 51% over Previous Quarter
Boulder, Colorado, April 22, 2021 (GLOBE NEWSWIRE) -- Surna Inc. (OTCQB: SRNA), a leader in environmental control systems for the controlled environment agriculture (CEA) market, announced today its preliminary first quarter 2021 booking results1.
Q1 2021 bookings were $5.5M, the second best in its history.
The Q1 2021 bookings were up 388% over the same period last year and were 51% higher than Q4 2020.
Q1 2021 and Q4 2020 bookings together represent a two-consecutive-quarter growth of 114% over the comparable Year-Over-Year period.
Trailing three quarters booking performance (Q3-Q1) was up 94% over the comparable Year-Over-Year period.
Bookings included six commercial sales contracts over $100,000, including one non-cannabis facility, totaling $5.0M in new commercial contracts and $0.5M in additional equipment orders.
Surna attributes this growth to its expanded technology offerings as well as its continued aggressive sales and marketing efforts. Market uncertainty from the pandemic appears to have eased in the second half of last year and the construction side of the industry has thrived, with new optimism contributing to new contract growth.
Tony McDonald, Surna’s Chairman and CEO comments, “The extraordinarily positive results in new contract bookings over the last three quarters are driven by the commitment from our talented teams at Surna. We realize that Q1 is now in the rear-view mirror, but we believe Surna is well positioned to continue to deliver strong growth and is preparing for more client wins, new product rollouts, and an expansion of new services offerings.”
1 Non-GAAP Financial Measures. To supplement our financial results under U.S. generally accepted accounting principles (“GAAP”) basis, we use non-GAAP measures in various instances, including bookings as indicated in this press release. We believe these non-GAAP measures are helpful in understanding and aiding the evaluation of our potential future results. The presentation of these non-GAAP measures should be considered in addition to our GAAP results and are not intended to be considered in isolation or as a substitute for financial information prepared or presented in accordance with GAAP. We believe these non-GAAP financial measures reflect an additional way to view aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. For purposes of this press release “bookings” means new sales contracts or equivalent commitment for products and/or services executed during the quarter for which we received an initial deposit. Bookings do not necessarily mean that they will convert to revenue and, therefore, may not be indicative of our future operating results. Our customers may attempt to renegotiate or terminate their contracts for any number of reasons, which may not result in the full amount of the booking, or any amount, being realized as revenue.
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