NASDAQ$SHLS

Shoals Technologies Group Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported record revenue with system solutions driving growth and gross margin expansion.

Shoals Technologies Group reported a record second quarter with a 38% year-over-year revenue increase to $59.7 million. System solutions revenue grew 62% and gross profit margin expanded by over 500 basis points. The company reaffirmed its 2021 outlook.

  • Revenue increased 38% year-over-year to $59.7 million.
  • System Solutions revenue increased 62% year-over-year, contributing 86% of total revenue.
  • Gross profit margin expanded by over 500 basis points year-over-year to 43.8%.
  • Backlog and awarded orders increased 63% year-over-year to $200.5 million.

Headline financials

Total Revenue

$59.7M

Previous: $43.4M+37.5%
EPS (adj)

$0.09

Previous: $0.03+187.1%
BLAO

$201M

Previous: $123M+63.0%
Adjusted EBITDA

$20.6M

Previous: $15.4M+33.9%
Adjusted Net Income

$14.7M

Previous: $13.1M+12.1%
Capital Expenditures

-$1.74M

No prior period
Free Cash Flow

$2.82M

No prior period
Net Income

$4.56M

Previous: $5.22M-12.7%
Operating Income

$14.1M

Previous: $5.45M+158.8%
Gross Profit

$26.2M

Previous: $16.8M+55.6%
Cash & Equivalents

$13.2M

No prior period
Total Assets

$274M

No prior period
Stock-Based Comp

$2.78M

No prior period

Revenue & EPS history

Shoals · Revenue · Quarterly

$59.7M

Q2 2021+37.5%vs Q2 2020
Beat estimate in 5 of 11 quarters(45%)
ActualEstimate

Forward guidance

The Company reaffirms its previously announced outlook for the full year ending December 31, 2021.

Tailwinds

  • Revenues to be in the range of $230 million to $240 million, up 31% to 37% year-over-year
  • Adjusted EBITDA to be in the range of $75 million to $80 million
  • Adjusted net income to be in the range of $47 to $51 million
  • Growth strategies of converting more customers to our BLA solution
  • Expanding internationally

Headwinds

  • Expectations do not consider material acquisitions
  • Expectations do not give effect for other unforeseen events
  • Expectations do not give effect for changes in global economic conditions
  • Decline in Components revenues
  • Net income and loss for 2021 are not directly comparable to 2020

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-1.2%

Avg return

Earnings day

-2.4%

Avg return

5 days after

-3.6%

Avg return

30 days after

38%

8 / 21 earnings

Positive

+27.2%

Q1 2023

Best reaction

-22.4%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.8%+6.8%+54.2%
Q4 2025-22.4%-40.1%-34.6%
Q3 2025-10.4%-12.2%-23.3%
Q1 2025+17.3%+35.4%+31.4%
Q4 2024-4.9%-32.4%-23.7%
Q3 2024-14.2%-21.0%-23.6%
Q2 2024-5.7%-6.2%+0.4%
Q1 2024-15.1%-21.6%-20.7%
Q4 2023-16.6%-15.5%-27.4%
Q3 2023-6.7%-14.2%-13.0%
Q2 2023-5.6%-11.7%-24.2%
Q1 2023+27.2%+27.0%+27.2%
Q4 2022+3.7%+5.6%-8.0%
Q3 2022+20.2%+33.9%+19.0%
Q2 2022+0.3%-2.9%-3.2%
Q1 2022+6.7%+20.1%+50.9%
Q4 2021+10.6%+12.4%-16.5%
Q3 2021-7.3%+6.6%-18.0%
Q2 2021-2.4%-0.1%-7.3%
Q1 2021-8.1%-10.3%-12.9%
Q4 2020+9.6%-10.7%-2.4%
Q3 2020
Q2 2020
Q1 2020
Q4 2019

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