NASDAQ$SHLS

Shoals Technologies Group Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported record revenue and earnings with gross margin expansion and backlog increase.

Shoals Technologies Group reported a 21% increase in revenues and expanded adjusted EBITDA margins by more than 900 basis points for the full year 2020. In Q4, revenues reached $38.8 million, and gross profit increased by 19.0% to $14.8 million, with gross margin expanding to 38.3%.

  • Revenues were $38.8 million, compared to $37.9 million for the prior-year period.
  • Gross profit increased 19.0% to $14.8 million, compared to $12.5 million in the prior year period.
  • Gross margin increased more than 530 bps to 38.3% from 32.9% in the prior year.
  • Backlog and awarded orders at December 31, 2020 were $157 million, an increase of 46% year-over-year.

Headline financials

Total Revenue

$38.8M

Previous: $37.9M+2.3%
EPS (adj)

$0.07

Previous: $0.05+48.8%
BLAO

$157M

Previous: $108M+46.0%
Adjusted EBITDA

$14.1M

Previous: $10.7M+32.0%
Adjusted Net Income

$11.1M

Previous: $10.1M+10.6%
Net Income

$4.25M

Previous: $7.84M-45.8%
Operating Income

$7.16M

Previous: $8.14M-12.1%
Gross Profit

$14.8M

Previous: $12.5M+19.0%
Cash & Equivalents

$10.1M

No prior period
Total Assets

$195M

No prior period

Revenue & EPS history

Shoals · Revenue · Quarterly

$38.8M

Q4 2020+2.3%vs Q4 2019
Beat estimate in 5 of 11 quarters(45%)
ActualEstimate

Forward guidance

For the full year 2021, the Company expects revenues to be in the range of $230 million to $240 million and Adjusted EBITDA to be in the range of $75 million to $80 million.

Tailwinds

  • Revenues to be in the range of $230 million to $240 million, up 31.0% to 36.7% 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
  • Converting more customers to our BLA solution
  • Broadening our product offering into complementary categories of EBOS

Headwinds

  • Expectations do not consider, or give effect for, material acquisitions that may be completed by the Company during 2021
  • Expectations do not consider, or give effect for, other unforeseen events, including changes in global economic conditions
  • Non-cash share-based compensation
  • Amortization of intangible assets
  • The tax effect of such items

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 Q4 2020

Historical avgQ4 2020

-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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