- Grows Year-over-Year Funded Loan Volume
133%, Revenue 90%, and Adjusted EBITDA 403% -
- Affirms Full Year 2021 Expected Funded
Loan Volume Growth of 81% to $2.7 Billion -
- Affirms Full Year 2021 Expected Revenue
Growth of 77% to $123 Million -
- Affirms Full Year 2021 Expected EBITDA
Growth of 151% to $60 Million -
Sunlight Financial (“Sunlight” or the “Company”), a premier,
technology-enabled point-of-sale financing company in the process
of completing a business combination with Apollo-affiliated Spartan
Acquisition Corp. II (NYSE: SPRQ) (“Spartan”), today provided
select first quarter 2021 metrics and affirmed the Company’s
previously provided forecasts for 2021 funded loan volume, total
revenue and Adjusted EBITDA.
First Quarter 2021 Key Financial Metrics
- Total funded loan volume of $581.1 million, a 133% increase
from $249.6 million in the first quarter 2020
- Total revenue of $24.8 million, a 90% increase from $13.1
million in the first quarter of 2020
- Adjusted EBITDA of $11.5 million, a 403% increase from $2.3
million in the first quarter of 2020
- Adjusted EBITDA Margin of 46.3%, nearly triple the Adjusted
EBITDA margin of 17.5% in the first quarter of 2020
“We continued our strong momentum from 2020, delivering
excellent first quarter top- and bottom-line results, and further
validating the power and value of our proprietary technology
platform, our broad and growing contractor network, and the
reliability of our capital provider partnerships,” said Matt
Potere, Chief Executive Officer of Sunlight. “We more than doubled
our funded loan volume from the first quarter of 2020, due to
steadily growing demand for residential solar and our continually
expanding network of contractors, ultimately driving year-over-year
revenue growth of 90%. Further, we continue to generate operating
leverage as we scale, and as a result, considerably expanded our
Adjusted EBITDA margin.”
“As residential solar and battery storage demand continues to
grow, further supported by attractive policy tailwinds, Sunlight is
well-positioned to remain the point-of-sale financing platform of
choice for residential solar customers, contractors and capital
providers, and we remain confident in our outlook for strong,
profitable growth in full year 2021 and beyond,” added Mr. Potere.
“We are excited to be combining with Spartan Acquisition Corp. II
(“Spartan”) (NYSE: SPRQ) and further accelerating the transition to
a clean energy future.”
2021 Outlook
Sunlight is affirming its previously provided 2021 financial
forecast for funded loan volume, revenue and Adjusted EBITDA,
including:
- Expected 2021 total funded loan volume growth of 81% to $2.66
billion
- Expected 2021 revenue growth of 77% to $123.4 million
- Expected 2021 Adjusted EBITDA growth of 151% to $60.2
million
Webcast Information
Investors may listen to a pre-recorded webcast regarding first
quarter 2021 results at 8:30 AM ET. Please visit Sunlight’s
investor relations website sunlightfinancial.com/investors to
access the webcast; a replay will be available shortly after on
Spartan’s website at spartanspacii.com.
Investor Presentation
A supplemental earnings presentation is available at
www.sunlightfinancial.com/investors. Additional information is
available on Form S-4, which Sunlight filed with the SEC on March
22, 2021 and further amended and filed with the SEC on May 12, 2021
and June 1, 2021.
Business Combination Transaction
On January 23, 2021, Sunlight entered into a business
combination agreement with Spartan. The business combination is
expected to close late in the second quarter or early in the third
quarter of 2021. Upon closing of the transaction, the combined
public company will be named Sunlight Financial Holdings Inc.
Sunlight Financial LLC will be the new public holding company’s
sole operating subsidiary and Sunlight’s existing management team
will continue to lead the business. Sunlight Financial Holdings
Inc. expects to be listed on NYSE and has reserved the ticker
“SUNL” following completion of the business combination with
Spartan.
About Sunlight Financial
Sunlight Financial 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.
About Spartan Acquisition Corp. II
Spartan is a special purpose acquisition entity focused on the
energy value chain in North America and was formed for the purpose
of effecting a merger, capital stock exchange, asset acquisition,
stock purchase, reorganization or similar business combination with
one or more businesses. Spartan is sponsored by Spartan Acquisition
Sponsor II LLC, which is owned by a private investment fund managed
by an affiliate of Apollo Global Management, Inc. (“Apollo”) (NYSE:
APO). For more information, please visit www.spartanspacii.com.
Non-GAAP Financial Measures
Some of the operating and financial information and data
contained in this press release, such as Adjusted EBITDA, and
Adjusted EBITDA Margin have not been prepared in accordance with
United States generally accepted accounting principles (“GAAP”).
Sunlight believes these non-GAAP measures of financial and business
results provide useful information to management and the reader
regarding certain financial and business trends relating to
Sunlight’s financial condition and results of operations. Spartan
and Sunlight further believe that the use of these non-GAAP
financial and business measures provides an additional tool for use
in evaluating projected operating results and trends and in
comparing Sunlight’s financial and operating measures with other
similar companies, many of which present similar non-GAAP financial
and operating measures to their investors and potential investors.
While Adjusted EBITDA, in particular, is relevant and widely used
across industries and in the industries in which Sunlight
participates, they may contain or exclude adjustments, exclusions
and one-time items that third parties may or may not adjust for in
connection with such measure, and such measure should not be
considered an alternative to any GAAP measures in evaluating the
profitability of an investment in, or whether to invest in or
consummate a transaction involving, Sunlight. The principal
limitation of the Adjusted EBITDA non-GAAP financial measure is
that it excludes significant items of income and expense that are
required by GAAP to be recorded in Sunlight’s financial statements.
In addition, it is subject to inherent limitations as it reflects
the exercise of judgment by Sunlight’s management about which items
of income and expense are excluded or included in determining this
non-GAAP financial measure. The Adjusted EBITDA non-GAAP financial
measure and other metrics used herein, including Adjusted EBITDA
Margin, should not be relied on or considered an alternative to any
GAAP measures or other measures related to the liquidity, financial
condition or financial results of Sunlight.
Forward-Looking Statements
The information in this press release includes “forward-looking
statements” related to Sunlight Financial LLC (“Sunlight” or the
“Company”) within the meaning of the “safe harbor” provisions of
the United States Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by the use of words
such as “estimate,” “plan,” “project,” “forecast,” “intend,”
“will,” “expect,” “anticipate,” “believe,” “seek,” “target” or
other similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. These
forward-looking statements may include, but are not limited to,
statements regarding estimates and forecasts of operating and
financial measures or metrics (and the assumptions related to their
calculation) such as Sunlight’s projected revenue, expenses, market
share, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow,
operating expenses, credit approvals, funded loan volume, and
expected capital commitments for 2020-2023 or specified periods or
years within such time period, projections of growth, market
opportunity and market share, the impact of COVID-19 on the Company
and its business and operations, the growth of the solar industry,
product mix, and factors outside of the Company’s control such as
macroeconomic trends, public health emergencies, natural disasters
and the impacts of climate change. These forward-looking statements
are not guarantees of future performance, reflect the current views
and expectations of Spartan Acquisition Corp. II’s (“Spartan”) and
Sunlight‘s management, are based on various assumptions, whether or
not identified herein, and are subject to known and unknown risks,
uncertainties and other factors that may cause actual results,
performance or achievements to be materially different from
expectations or results projected or implied by such
forward-looking statements. Such risks and uncertainties include,
among others: changes in domestic and foreign business, market,
financial, political and legal conditions; the inability of Spartan
and Sunlight to successfully or timely consummate the proposed
business combination, including the risk that any required
regulatory approvals are not obtained, are delayed or are subject
to unanticipated conditions that could adversely affect the
combined company or the expected benefits of the proposed business
combination or that the approval of the stockholders of Spartan or
Sunlight is not obtained; failure to realize the anticipated
benefits of the proposed business combination; the amount of
redemption requests made by Spartan’s public stockholders; the
ability of Spartan or the combined company to issue equity or
equity-linked securities in connection with the proposed business
combination or in the future; risks relating to the uncertainty of
the projected operating and financial information with respect to
Sunlight; risks related to Sunlight’s business and the timing of
expected business milestones or results; the effects of competition
and regulatory risks, and the impacts of changes in legislation or
regulations on Sunlight’s future business; the expiration, renewal,
modification or replacement of the federal solar investment tax
credit, rebates and other incentives; the effects of the COVID-19
pandemic on Sunlight’s business or future results; the Company’s
ability to attract and retain the Company’s relationships with
third parties, including the Company’s capital providers and solar
contractors; changes in the retail prices of traditional utility
generated electricity; the availability of solar panels, batteries
and other components and raw materials; and such other risks and
uncertainties discussed in the “Risk Factors” section of Spartan’s
Annual Report on Form 10-K for the year ended December 31, 2020 as
filed with the United States Securities and Exchange Commission
(the “SEC”) on March 11, 2021, as amended on May 11, 2021, and
Registration Statement on Form S-4 as filed with the SEC on March
22, 2021, as amended on May 12, 2021 and June 1, 2021, and other
documents of Spartan filed, or to be filed, with the SEC. All
forward-looking statements used herein speak only as of the date
they are made and are based on information available at that time.
Neither Spartan nor Sunlight assumes any obligation to update
forward-looking statements to reflect circumstances or events that
occur after the date the forward-looking statements were made or to
reflect the occurrence of unanticipated events except as required
by federal securities laws. As forward-looking statements involve
significant risks and uncertainties, caution should be exercised
against placing undue reliance on such statements.
Important Information for Investors; Participants in
Solicitation
In connection with the transactions (the “Transactions”)
contemplated by that certain Business Combination Agreement, dated
as of January 23, 2021, by and among Sunlight, Spartan and their
subsidiaries and affiliates party thereto, Spartan has filed a
Registration Statement on Form S-4, as amended (which includes a
proxy statement/prospectus of Spartan) and other relevant documents
with the SEC. This communication shall not constitute an offer to
sell or the solicitation of an offer to buy any securities nor
shall there be any sale of securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of such
jurisdiction. In addition, nothing contained herein should be
construed as legal, financial, tax or other advice. SECURITY
HOLDERS OF SPARTAN AND SUNLIGHT ARE URGED TO READ (1) THE
REGISTRATION STATEMENT, (2) THE PROXY STATEMENT/PROSEPCTUS
(INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO), (3) OTHER
DOCUMENTS RELATING TO THE TRANSACTIONS THAT WILL BE FILED WITH THE
SEC BY SPARTAN, AND (4) ADDITIONAL PRESS RELEASES FROM SUNLIGHT AND
SPARTAN FOUND ON THEIR RESPECTIVE WEBSITES, CAREFULLY AND IN THEIR
ENTIRETY WHEN THEY BECOME AVAILABLE, BECAUSE SUCH DOCUMENTS WILL
CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTIONS. Spartan’s and
Sunlight’s stockholders can obtain a free copy of the proxy
statement/prospectus, as well as other filings containing
information about Spartan, Sunlight and the Transactions, without
charge, at the SEC’s website located at www.sec.gov. Spartan and
its directors and executive officers and other persons may be
deemed to be participants in the solicitations of proxies from
Spartan’s stockholders with respect to the proposed business
combination and the other matters set forth in the proxy
statement/prospectus. Information regarding Spartan’s directors and
executive officers is available under the heading Item 10.
“Directors, Executive Officers and Corporate Governance” included
in its Annual Report on Form 10-K filed with the SEC on March 11,
2021 and regarding the combined company’s proposed directors and
executive officers after the Transactions are consummated, as well
as a description of their direct and indirect interests, by
security holdings or otherwise is available under the headings
“Management After the Business Combination”, “Interests of Certain
Persons in the Business Combination” and “Beneficial Ownership of
Securities” included in its Registration Statement on Form S-4/A as
filed with the SEC on May 12, 2021 and June 1, 2021, and other
relevant documents that may be subsequently filed with the SEC.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210603005342/en/
Media Contacts: Investor Relations Lucia Dempsey,
Sunlight Financial Garrett Edson, ICR
investors@sunlightfinancial.com 888.315.0822
Public Relations Doug Donsky / Brian Ruby, ICR
media@sunlightfinancial.com 646.677.1844
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