“ 4:15p ET 8/16/2021 - Dow Jones
Press Release: Sunlight Financial Reports Second Quarter 2021 Results
Mentioned: SUNL
Sunlight Financial Reports Second Quarter 2021 Results
- Year-over-Year Funded Loan Volume Triples to $666 Million in 2Q 2021 -
- Year-over-Year Total Revenue up 162% to $26.9 Million in 2Q 2021 -
- 2Q 2021 Net Income increased to $5.2 Million, up from $(1.2) Million in 2Q 2020 -
- 2Q 2021 Adjusted EBITDA increased to $11.5 Million, up from $0.2 Million in 2Q 2020 -
- Revises Full-Year 2021 Outlook for Key Metrics -
NEW YORK & CHARLOTTE, N.C.--(BUSINESS WIRE)--August 16, 2021--
Sunlight Financial Holdings Inc. ("Sunlight Financial", "Sunlight" or the "Company") (NYSE:SUNL), a premier, technology-enabled point-of-sale financing company, today provided financial results for the second quarter ended June 30, 2021.
"Sunlight generated a record level of loan volume in the second quarter of 2021, with funded loans of $666 million, demonstrating our unique ability to meet the growing demand for residential solar with our best-in-class point-of-sale technology platform and our high-quality contractor partnerships," said Matt Potere, Chief Executive Officer of Sunlight. "Our strong funded loan volume led to profitable earnings growth, with Total Revenue up 162% and significant Net Income and Adjusted EBITDA increases relative to the second quarter of 2020.
"We also grew our contractor network by 77% since the second quarter of 2020, bringing our total active contractor base to nearly 1,400, and saw a record-high battery attachment rate of 26%, driving our average solar loan balance up 15% relative to the second quarter of 2020," added Mr. Potere. "Sunlight is well-positioned to pursue its growth strategy as a public company, continuing to provide frictionless financing and innovative products to homeowners to support the transition to a clean energy future."
All financial and operating results included in this release are for the Sunlight Financial LLC business, and do not give effect to the closing of the business combination with Spartan Acquisition Corp. II ("Spartan"), which occurred on July 9, 2021 (after the close of the quarter ended June 30, 2021).
Second Quarter 2021 Key Financial Metrics
-- Total funded loans of $666 million, tripling from $222 million in the prior-year period -- Total Revenue of $26.9 million, a 162% increase from $10.3 million in the prior-year period -- Net Income of $5.2 million, up from a net loss of $(1.2) million in the second quarter of 2020 -- Adjusted EBITDA of $11.5 million, a significant increase from $0.2 million in the prior-year period -- Adjusted EBITDA Margin of 42.7%, nearly 20x Adjusted EBITDA margin of 2.2% in the second quarter of 2020
Second Quarter 2021 Key Operational Metrics
-- Borrower counts increased to a new quarterly high of 18,572, more than doubling from 6,894 borrowers in the second quarter of 2020 -- New contractor relationships grew 77% relative to the second quarter of 2020, with 46 new solar contractors and 138 new home improvement contractors joining the Sunlight platform in the second quarter of 2021 -- Battery attachment rate of 26%, triple the rate of just under 9% in the prior-year period -- Average loan balance increased 11% year-over-year to $35,870, with solar loans averaging $39,852 in the second quarter of 2021
Recent Business Highlights
-- Following the successful completion of the business combination with Spartan on July 9, 2021, Sunlight began trading on the New York Stock Exchange ("NYSE") under the ticker symbol "SUNL" on July 12, 2021. -- As of June 30, 2021, Sunlight had a cumulative funded loan total of $4.8 billion, and is poised to surpass $5 billion in cumulative funded loans in the third quarter of 2021. -- On August 5, 2021, Sunlight announced innovative and competitive new loan products for residential solar and energy storage systems that provide additional term and pricing options for contractors to enable cost-saving installations for homeowners.
Full-Year 2021 Outlook
Sunlight is revising its previously provided full-year 2021 financial forecast for funded loans, Total Revenue and Adjusted EBITDA to the following ranges:
-- Expected 2021 Total funded loans of $2.6 - $2.8 billion -- Expected 2021 Total Revenue of $113 - $121 million -- Expected 2021 Adjusted EBITDA of $46 - $51 million -- Expected 2021 Adjusted EBITDA Margin of 38% - 42%
Sunlight continues to expect a strong year-over-year increase in funded loans and the business is well-positioned for long-term growth. Near-term forecasts for Total Revenue and Adjusted EBITDA, however, have been impacted both by higher-than-expected costs related to transitioning to, and operating as, a public company, and by lower expectations for Platform Fee Margins resulting from the competitiveness of the market. Each of these drivers account for roughly half of the overall difference in Adjusted EBITDA between Sunlight's previous guidance and the mid-point of this revised guidance. As a result of previously enacted pricing changes, however, Platform Fee Margins are expected to improve from 2Q 2021 levels throughout the second half of 2021.
The mid-points of the updated 2021 outlook reflect robust year-over-year growth of 84% for funded loans, 68% for Total Revenue, and 102% for Adjusted EBITDA relative to full-year 2020 actual results.
Sunlight plans to initiate full-year 2022 guidance on its fourth quarter and full-year 2021 earnings call early next year.
Conference Call Information
Sunlight will host a conference call and webcast to discuss its second quarter 2021 financial and operational results and business outlook at 5:00 PM ET today, August 16, 2021. The conference call will be webcast live from the Company's investor relations website at ir.sunlightfinancial.com. A replay will be available on the investor relations website following the call.
Earnings Presentation
A supplemental earnings presentation is available at ir.sunlightfinancial.com. Additional information is available in the Form 8-K/A, which Sunlight filed with the SEC on August 16, 2021.
About Sunlight Financial
Sunlight is a premier, technology-enabled point-of-sale finance company. Sunlight partners with contractors nationwide to provide homeowners with financing for the installation of residential solar systems and other home improvements. Sunlight's best-in-class technology and deep credit expertise simplify and streamline consumer finance, ensuring a fast and frictionless process for both contractors and homeowners. For more information, visit www.sunlightfinancial.com. ”
