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Reliant Holdings, Inc. (RELT)·Q4 2021 Earnings Summary

Executive Summary

  • Q4 2021 revenue was approximately $0.79M, gross margin ~$0.13M (15.9%), and net loss ~$0.11M; sequentially stronger revenue vs Q3 amid margin compression from higher materials/labor costs .
  • Reliant reported FY 2021 new contract sales of $3.8M and an increased average pool price to $165,865, reflecting demand in upscale housing; management emphasized positioning to capitalize on sector growth .
  • Year‑end backlog disclosed at ~$4.02–$4.06M to be recognized in 2022, providing revenue visibility despite equipment and labor shortages and permitting delays noted across 2021 .
  • No formal quantitative guidance or Wall Street consensus was available; S&P Global estimates could not be retrieved due to missing CIQ mapping (unavailable).

What Went Well and What Went Wrong

  • What Went Well

    • New contract sales of $3.8M and rising average pool price ($165,865 vs. $154,006 prior year) highlighted pricing power and demand resilience .
    • Management reiterated strategic expansion across Reliant Pools, Custom Homes, and newly formed Reliant Solar to broaden revenue opportunities .
    • Quote: “Reliant Pools is strongly positioned to capitalize on this growth sector of the industry…” — Elijah May, CEO .

  • What Went Wrong

    • Margin pressure from pronounced increases in decking, plaster, gunite, equipment, and labor costs; FY gross margin % fell to 22.8% from 30.8% in 2020 .
    • Operational delays (equipment rationing, subcontractor COVID absences, permitting bottlenecks) constrained project completions and weigh on near‑term throughput .
    • Working capital deficit widened to $262,518 and a FY net loss of $435,197, underscoring scale and liquidity constraints .

Financial Results

MetricQ2 2021Q3 2021Q4 2021
Revenue ($)$807,463 $616,470 $789,144 (FY $2,796,138 − 9M $2,006,994)
Gross Margin ($)$308,603 $92,751 $125,259 (FY $637,169 − 9M $511,910)
Gross Margin (%)38.2% 15.0% 15.9% (derived from Q4 GM$ / Q4 Rev$)
G&A ($)$217,890 $149,507 $239,657 (FY $1,122,899 − 9M $883,242)
Net Income (Loss) ($)$142,206 $(56,950) $(114,761) (FY $(435,197) − 9M $(320,436))
EPS (basic & diluted)$0.01 $(0.00) Not disclosed (quarterly) — FY EPS $(0.03)
  • Versus Estimates: S&P Global consensus was unavailable due to missing CIQ mapping (not retrievable).
  • Year‑to‑date context: FY 2021 revenue $2,796,138; gross margin $637,169; G&A $1,122,899; net loss $435,197 .

Segment/Division breakdown (company-reported)

  • Reliant Pools: sole revenue contributor in 2021 (residential custom pools; no formal segment reporting) .
  • Custom Homes: no revenue; project groundwork and permitting in progress .
  • Reliant Solar: formed Sept 2021 with no revenue yet .

KPIs

KPIFY 2020FY 2021Notes
Average Pool Price ($)$154,006 $165,865 Reflects higher materials/labor and mix shift to larger projects
New Contract Sales ($)—$3,800,000 Management headline in press release and MD&A
Backlog (Remaining Performance Obligations) ($)—$4,024,103 ; $4,062,052 Two figures disclosed in 10‑K; both indicate 2022 recognition
Contract Liabilities ($)$267,156 $583,726 Year‑end billings in excess of costs (supports near‑term revenue)
Employees (FT)—4 Heavy subcontractor utilization

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue timing (Backlog recognition)FY 2022Not previously quantified~$4.02–$4.06M remaining performance obligations expected to be recognized in 2022 New disclosure
Formal quantitative guidance (Revenue, margins, OpEx, tax)FY/Q4 2021–FY 2022NoneNoneMaintained (no formal guidance)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2021)Previous Mentions (Q3 2021)Current Period (Q4 2021)Trend
Demand/Pool PricingStrong demand; average pool costs up ~20% YoY; backlog ~$3.2M Demand sustained; backlog ~$4.16M New contract sales $3.8M; average price $165,865; demand “remains high,” recent slight slowing noted Stable to moderating
Supply Chain/EquipmentEquipment rationing; permitting delays; subcontractor COVID impacts Continued equipment delays; COVID disruptions Persistent constraints acknowledged across the year Persistent headwind
Labor/InflationElevated labor & input costs; material increases across categories Continued cost escalation; GM% down to 15% in Q3 FY GM% fell to 22.8% (from 30.8% in 2020) Margin pressure
Backlog/VisibilityBacklog $3.2M (H1) Backlog $4.16M (Q3) Backlog ~$4.02–$4.06M; expected recognition in 2022 Healthy
Segment expansionCustom Homes permits; foundation planned “next 30 days” Marketing targeted by end of Q4; foundation imminent Solar subsidiary formed; early-stage Building optionality
Regulatory/legalSettlement arrangements under way Accrued settlement balance $35K $15K accrual remaining at YE Decreasing burden

Management Commentary

  • “Reliant Pools’ revenues…are a testament to the growth in the upscale housing markets…Reliant Pools is strongly positioned to capitalize on this growth sector of the industry…” — Elijah May, CEO .
  • “We look to give homebuyers and builders quality high end products…through our portfolio of Reliant Companies…” — Elijah May .
  • Strategic focus: expand and grow core pool operations; develop Custom Homes; explore Solar installations (renewables optionality) .

Q&A Highlights

  • No Q4 2021 earnings call transcript was available; key messages were delivered via 8‑K press release and the FY 2021 10‑K .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2021 EPS and Revenue was not retrievable due to missing CIQ mapping; consensus comparisons are unavailable.
  • Implication: With no external estimates, investor assessment should anchor to backlog conversion, pricing/mix trends, and margin trajectory disclosed in filings .

Key Takeaways for Investors

  • Backlog of ~$4.02–$4.06M supports revenue visibility into 2022 despite supply chain and labor headwinds .
  • Sequential Q4 revenue improvement vs Q3 (approx. $0.79M vs $0.62M) alongside low‑teens gross margins underscores ongoing cost pressure and the need for disciplined pricing and project scheduling .
  • Average pool price increases and $3.8M in new contract sales reflect strong customer mix and pricing power, but margin recovery depends on input cost normalization .
  • Liquidity and scale constraints remain (working capital deficit, net loss), suggesting careful cash management and potential need for capital to fund expansion or acquisitions .
  • Expansion into Custom Homes and Solar adds optionality; near‑term contribution is minimal until projects ramp and operations mature .
  • Corporate governance and control concentrated with CEO (Series A preferred super‑majority voting), which may affect capital markets access and investor sentiment .
  • With no formal guidance or consensus coverage, focus on operational execution (backlog conversion timelines, cost discipline) as primary stock narrative drivers .

Notes:

  • Q4 2021 figures presented are derived from FY 2021 results minus nine‑month results (as reported), with all source citations provided.
  • Backlog figure appears in two places in the 10‑K ($4,024,103 and $4,062,052), indicating a small disclosure inconsistency; both indicate substantial 2022 revenue visibility .